The CPM model refers to advertising bought on the basis of impression. This is in contrast to the various types of pay-for-performance advertising, whereby payment is only triggered by a mutually agreed upon activity (i.e. click-through, registration, sale).
The total price paid in a CPM deal is calculated by multiplying the CPM rate by the number of CPM units. For example, one million impressions at $10 CPM equal a $10,000 total price.
1,000,000 / 1,000 = 1,000 units
1,000 units X $10 CPM = $10,000 total price
The amount paid per impression is calculated by dividing the CPM by 1000. For example, a $10 CPM equals $.01 per impression.
$10 CPM / 1000 impressions = $.01 per impression
CPC:cost-per-click (CPC) :
The cost or cost-equivalent paid per click-through. The terms pay-per-click (PPC) and cost-per-click (CPC) are sometimes used interchangeably, sometimes as distinct terms. When used as distinct terms, PPC indicates payment based on click-throughs, while CPC indicates measurement of cost on a per-click basis for contracts not based on click-throughs.
For example, consider a campaign where payment is based on impressions, not clicks. Impressions are sold for $10 CPM with a click-through rate (CTR) of 2%.
1000 impressions x 2% CTR = 20 click-throughs
$10 CPM / 20 click-throughs = $.50 per click
PPC:pay per click
Online advertising payment model in which payment is based solely on qualifying click-throughs.In a PPC agreement, the advertiser only pays for qualifying clicks to the destination site based on a prearranged per-click rate. Popular PPC advertising options include per-click advertising networks, search engines, and affiliate programs.
Paying per click is sometimes seen by some as a middle ground between paying per impression and paying per action. When paying per impression, the advertiser assumes the risk of low-quality traffic generated by the publisher. When getting paid for actions, the publisher assumes the risk of low-converting offers by the advertiser. In the PPC model, the publisher does not have to worry about the sales conversion rate of the target site, and the advertiser does not have to worry about how many impressions it takes to attract the specified number of clicks.
Produce, provide or link to:
Adult content
Sexual content
Profane content
Illegal drugs or related content
Hate speech or hate graphics content
Engage in, promote or facilitate illegal or legally questionable activities such as pirating, hacking, spamming and infecting
Are hosted by a free service, are personal home pages, provide free URL redirection, or do not own the domain they are under
Are under construction
Sponsor "incentivized clicks," or “pay-to-surf" programs, or use resident desktop objects such as bars and window frames
Use timed banner rotation or other "auto-loading" methods
Consist mostly of forums (chat, message boards, etc.)
Have an excessive amount of advertising on any given page
