Differences Between CPA, CPC, CPL, & CPS

There are different forms of online advertising existing today which people use to expand their online businesses. There are many affiliate programs that people tend to join to expand their businesses like CPA, CPC, CPL or CPS. Though similar in many ways, these forms of online advertising have their own differences.

As the name suggests, in the case of CPA, or Cost Per Action, the advertiser has to pay for any specified action linked to the advertisement. This action may be a lead, purchase or registration, which is determined by the advertiser. This means that just clicking the ad does not cost the advertiser anything; some action has to be done for the publisher to pay.


Cost Per Click is Used Widely in Blogs and Advertising Networks


In the case of CPC (Cost Per Click) campaign, the advertiser has to pay for the clicks through from an online advertisement. This is widely used in search engines, blogs and advertising networks where the advertiser pays when a user clicks on an ad which leads to the advertiser’s website.

In the case of a CPL (Cost Per Lead) campaign, there is a pricing model that is used to find out how much revenue the advertiser earns just when a visitor clicks on a banner ad, which takes the visitor to the advertiser’s website.

It is only when the visitor becomes a qualified lead with the completion of the registration form of the site or perhaps by signing up the offer the advertiser is promoting. IncentReward follows this model with the majority of their campaigns. This thus leads to reduced click fraud, and makes this a popular form of online marketing.


The Advertiser is Charged Only if Visitor Buys the Product in CPS


In the case of CPS (Cost Per Sale), the advertiser is paid only when the visitor clicks on the ad to reach the website of the advertiser and then decides to pay for the item. This means that it is only if a visitor shows interest in the product of the advertiser and buys it after clicking on the CPS ad that the advertiser is charged for the ad.

It is up to the individual to choose which form of online advertising to adopt for the advertisement of their product or service. To some people, the CPL proves to be the best choice while others may consider the CPS to be the best choice.