CPM: Cost Per Mille (1,000 Impressions)

CPM charges advertisers for ad impressions, regardless of whether users engage. "Mille" is Latin for thousand, so CPM is the cost per 1,000 times an ad gets shown. If CPM is $5, you pay $5 for every 1,000 impressions your ad receives. Programmatic IVT Detection protects CPM campaigns from impression fraud and invalid traffic.

When to Use CPM

CPM works for brand awareness campaigns where the goal is reaching as many people as possible. You're not paying for clicks or conversions—just eyeballs. This makes sense when introducing new products, building brand recognition, or targeting top-of-funnel awareness.

Display advertising, video pre-roll, and social media brand campaigns typically use CPM. The metric focuses on reach and frequency rather than immediate response.

CPM Fraud Vulnerabilities

Impression Fraud: Bots generate fake impressions that no human ever sees. Publishers or fraudsters use ad stacking, hidden ads, or automated page loads to inflate impression counts.

Invalid Traffic: Non-human traffic from bots, scrapers, or automated systems counts as impressions but delivers zero value. Programmatic IVT Detection identifies and filters this traffic before you pay for it.

Viewability Issues: Ads might "load" but never actually appear in users' viewports. You pay for impressions no one could see. This isn't always fraud—sometimes it's just poor placement—but it wastes budget either way.

CPC: Cost Per Click

CPC charges only when users click your ads. This shifts risk from advertiser to publisher—you only pay for engagement, not just impressions. CPC typically costs more per action than CPM since clicks represent higher intent.

When to Use CPC

CPC makes sense when driving traffic is the goal. Search advertising, retargeting campaigns, and performance-focused display all commonly use CPC. You're paying for interested users who took action to learn more.

The model works well mid-funnel when you want website visits, content consumption, or consideration. Users who click show higher intent than those who merely saw an impression.

CPC Fraud Vulnerabilities

Click Fraud: Bots or click farms generate fake clicks that drain budgets. Competitors might click your ads to waste your spend. Publishers might inflate clicks to increase earnings. IP Blocklist proactively blocks known fraud sources before they can click your ads.

Low-Quality Clicks: Even when humans click, not all clicks are equal. Accidental clicks, misleading ad placements, or users immediately bouncing waste budget. These aren't fraud but they're not valuable either.

Click Injection: Mobile fraud where apps inject fake clicks to steal attribution credit. The click happened but the fraudster added no value to the customer acquisition.

CPA: Cost Per Action/Acquisition

CPA charges only when users complete specific actions—purchases, signups, app installs, or other defined conversions. This is pure performance marketing. You pay for results, not exposure or engagement.

When to Use CPA

CPA suits bottom-of-funnel campaigns where conversions matter most. E-commerce, lead generation, app marketing, and direct response all use CPA. You only pay when you get what you actually want—customers.

The model shifts almost all risk to publishers or ad networks. They only earn money when they deliver conversions. This makes CPA the most expensive per-action but the most accountable pricing model.

CPA Fraud Vulnerabilities

Fake Conversions: Fraudsters complete actions without real intent. They create accounts with fake information, submit bogus leads, or install apps they never use. IP Risk Score identifies suspicious traffic sources and fake conversion attempts before you pay for them.

Attribution Fraud: Fraudsters steal credit for organic conversions or conversions driven by other channels. You pay commissions for customers you would have gotten anyway.

Low-Quality Leads: The action gets completed but the user has no value. Fake email addresses, users who immediately uninstall apps, or leads that never respond. Technically conversions, but worthless.

No Model is Fraud-Proof

Each pricing model faces different fraud types but none are immune. CPM deals with impression fraud, CPC with click fraud, and CPA with attribution theft and fake conversions. Match your fraud prevention solution to your pricing model: Programmatic IVT Detection for CPM, IP Blocklist for CPC, and IP Risk Score for CPA.

🛡️ Protect Each Pricing Model with the Right Solution

CPM Campaigns: Programmatic IVT Detection filters bot traffic and impression fraud to protect impression-based pricing. CPC Campaigns: IP Blocklist proactively blocks known click fraud sources before they drain your budget. CPA Campaigns: IP Risk Score identifies suspicious conversion sources and fake actions. Match your fraud prevention to your pricing model.

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Choosing the Right Model

Consider Your Goals

Brand awareness campaigns need reach, making CPM appropriate. Traffic-focused campaigns want engaged users, suggesting CPC. Performance campaigns that only care about conversions should use CPA when available.

Match the Funnel Stage

Top of funnel (awareness) typically uses CPM to maximize reach. Mid-funnel (consideration) often uses CPC to drive traffic. Bottom of funnel (conversion) uses CPA when publishers or networks offer it.

Consider Risk Tolerance

CPM puts risk on advertisers—you pay for impressions that might not convert. CPA puts risk on publishers—they only earn when conversions happen. CPC splits risk somewhere in between.

Budget and Scale

CPM typically offers the most scale at the lowest per-impression cost. CPA offers the least scale but highest per-conversion costs. CPC falls in between. Your budget and volume needs influence model selection.

Mix Models Strategically

Many successful campaigns use different models for different tactics. CPM for prospecting and awareness, CPC for retargeting and consideration, CPA for conversion-focused partners. Test different models and optimize based on what delivers the best return.

Frequently Asked Questions

CPM rates vary dramatically by platform, targeting, format, and industry. Display advertising might range from $2-$10 CPM. Video pre-roll often costs $15-$30 CPM. Premium placements or highly targeted audiences can exceed $50 CPM. Compare rates within your industry and platform rather than across different channels.

Direct publisher relationships allow negotiation. You might propose CPA when they offer CPC, or negotiate lower CPM rates for volume commitments. Programmatic platforms offer less flexibility since pricing is algorithmically determined. Network deals sometimes allow model negotiations for significant spend levels.

Publishers prefer models that maximize their revenue while minimizing risk. CPM guarantees payment regardless of performance, making it lowest risk for publishers. CPC requires driving engagement. CPA requires driving conversions, putting all risk on publishers. Publishers typically charge higher rates as risk increases—CPM is cheapest, CPA most expensive.