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What does... Abbreviations in online marketing mean
The conversion and sales of an online store depend on its visibility, there are several ways to do this. One of them is running online advertising campaigns, one of the best known being Google Ads, formerly Google Adwords, or banner or link advertising on relevant websites. The different payment methods for online marketing are hidden behind abbreviations, which are explained again here.
CPL - cost per lead
Translated into German, this term means something like cost per data package or contact fee. Lead stands for the generation of personal data entered by interested parties in a provided form, for example in connection with subscribing to a newsletter. With the cost-per-lead billing model, the advertiser (merchant or advertiser) pays a predetermined amount to the publisher, the operator of the advertising platform, for each registration.
CPC – Cost Per Click
With cost-per-click - i.e. costs per click - the merchant always pays when a prospective customer clicks on an advertisement such as an advertising banner or another placed ad. CPC is mainly used in affiliate and search engine marketing.
CPO/ CPS – Cost per Order/ Cost per Sale
With the CPO/CPS billing model, the merchant, i.e. the online retailer, only has to pay fees if the customer places an order. This variant works purely success-based, the expenses are directly assigned to specific income from an order in the online shop.
CPA – Cost Per Action
Although cost-per-action is expensive compared to other billing models, it is also purely success-based. The advertiser only pays a fee to the publisher when a predetermined action occurs on the website. This can be filling out a form, downloading a white paper or subscribing to a newsletter. In this respect, this variant is very similar to the CPL, but is more general. Which model is the right one? The various payment models in online marketing have advantages and disadvantages and different levels of risk, which should be carefully weighed against each other. The CPL and CPO variants are particularly low-risk for the advertiser, since payment is only made if the online retailer also generates income.
