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Differences Between PPC, PPV, CPV, CPA, PPA

Introduction

PPC, PPV, CPV, CPA, and PPA are various advertising means used in online marketing to drive traffic to websites, landing pages, or any online platform used for business purposes.

Before we go into the differences, it is good to know their definitions. Knowing what they mean and their characteristics will clearly point out major differences among them. Here are the abbreviations in full:

PPC – Pay per Click

PPV – Pay per View

CPV – Cost per View

CPA – Cost per Action

PPA – Pay per Action

By plainly looking at the abbreviations, I bet any layman would distinguish between them. Anyway, let’s get going.

PPC – Pay per Click

Pay-per-click advertising is a form of online advertising based on the principle that internet users are driven by an insatiable desire to spend money. Because you only pay for each user that clicks on your link, you can offer the lowest cost per click advertising possible.

If someone visits your website, they have probably come to it either because they are looking for your products or services or as an alternative to your competitors. If they haven’t already decided which option they want, your website will help them do this. So you need to make sure it’s easy to use and gives a good first impression.

If you’ve come to the site for the first time or if the user is using a different browser, the PPC campaign will show up, just as if they had clicked on it. The advertiser pays only when their ad is clicked on.

It is a good way of driving targeted traffic to a website and is highly recommended in online ads.

This way of advertising will pay for itself fairly quickly and can be a big cost-saving option for companies. With any other form of online advertising, such as banner ads, the advertiser pays for the number of times their ad is displayed on other sites, so they often need to pay for many adverts to reach the same number of people as PPC ads.

PPV – Pay per View & CPV – Cost per View

CPV represents the amount you have to pay for a single view of your website, be it a click, a call, an online enquiry etc. It is different from the average rate because it is calculated based on the average click-through rate of the traffic that you send to the website. In contrast, the average rate is calculated on the revenue you get from each sale made via a website.

Both PPV and CPV mean the same thing; it is the amount one would be charged for any view of an ad regardless of any click made on it or not. It is normally charged in groups of views, e.g. $0.30 per 1000 views and so on.

It would therefore prove to be quite cheap and effective if you were to get targeted traffic from it. However, it can be very expensive if your ad has many views but little action. Such ads need to be very catchy and attract the required action to derive value from them. The Facebok ad provides a good example of both PPC and PPV ads. I would recommend you take a look to see the difference.

CPA – Cost per Action and PPA – Pay Per Action

Both CPA and PPA mean the same thing. It is the amount charged or paid for every intended action done successfully. Or instant, joining an online programme, filling out a form, etc.

Pay Per Action also called Pay Per Lead or PPA, is an online monetization model. It allows businesses to pay a site owner for each visitor they bring to their website. PPA is a great alternative to AdWords and similar products as it creates a better return on investment. PPA is becoming increasingly popular and has the potential to boost your sales. There are three types of PPA: – PPC (Pay Per Click), PPM (Pay Per Install), and PPA (Pay Per Action).

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