# What is CPM, CPC, CPA and CTR in Adsense terms

CPM (Cost per Thousand – “M” in CPM represents the roman numeral for 1,000)

Adsense’s most basic tool is CPM, which is also called cost per thousand of impressions. This means that the per 1000 impression is how much the advertiser has to pay, and how much will you earn from publishing it on your website. Advertisers bidding on Google for CPM and explain how much they want to pay for the set of an impression. CPM bidding is best suited for advertisers who focus more on brand awareness.

Does CPM calculate

Firstly, advertisers require terms to be bidding for those who want to show. After that, a total number of impressions that your ad will get is divided by 1000. Like if your ad makes 10,000 impressions, then you have to divide by 1000. So 10000/1000 is 10

In the next step

Whatever bidding cost the advertisers has taken, the answer is given to divide (10) from the above-given answer. Example – If the total cost of advertising is \$ 200 then dividing \$ 200 by 10 will give you a CPM which is \$ 20

CPC (Cost per Click)

This is the most common tool because it is very popular among advertisers. This is a matter of per click payment. There is no point in impression in this too. CPC means you will get a per click payment or how much the advertiser has to pay to the publisher when they click on their ad banner. Cost per click depends on rate keywords and its success rate. For example – the keyword “Finance” will be expensive from any of the “Poem” keywords.

CPC Calculate Formula – CPC = Advertiser Total Cost / Number of Clicks

The CPC rate can also be \$ 2 per click and 2 cents per click. The rate of CPC depends solely on the product and your market. With so many factors, I also depend on the keyword competition as much as the keyword competition, the more demand it will be and the cost.

CTR (Click through Rate)

Now you know about CPM and CPC and we are doing CTR that depends on both CPM and CPC. CTR measures the effectiveness of any advertisement while CPM and CPC cost of advertising. This means that CTR sees how many impressions were on your website or how many users viewed the ad banner and how many people clicked it. So this is the percentage of the people who clicked the ad banner and clicked. For Example – If your ad banner 500 logo was viewed but only 5 people clicked on the ad then the CTR would be – 1% or .01

How to calculate CTR – CTR = (Number of Clicks / Number of impressions) x 100

Example – (5/500) x 100 = 1%

CPA (Cost per Action)

Cost per action is also called pay per action (PPA) and cost per conversion. This is an online advertising pricing model in which the advertiser pays for each specific action such as a form submit, newsletter sign up, filling up inquiry form, registration or any sale. This is a method that gives perfect information about the efficiency of your online ad. This is done whenever a user engages in a defined activity.