1. CPM

CPM (Cost Per Mille or Cost Per Thousand) is abbreviated for Cost Per Mille or Cost Per Thousand. It refers to the amount an advertiser spends for every 1000 impressions of a digital advertisement.

In other terms, it is the amount charged for every 1000 times an advertisement is shown to visitors. Viewers do no action when they see an ad; instead, the cost per thousand impressions (CPM) is determined.

Some performance marketers are shifting their attention away from cost per thousand impressions (CPM) and toward measures that have a meaningful, action-based significance.

2. CPC

The term "Cost Per Click" refers to the amount of money paid for each viewer clicks on an advertisement. Because the viewer has made an action and has clicked on the ad, CPC is a higher predictor of engagement than CPM in terms of viewership.

A more excellent CPC is typically indicative of a higher value of the conversion due to the conversion. For example, a luxury vehicle manufacturer may set a higher CPC to target a much smaller audience of high-potential clients who are more likely to purchase a high-end automobile.

3. CPA

As the name implies, Cost Per Action (CPA) assesses campaign effectiveness according to a particular targeted action that you want the target audience to do, such as downloading an ebook, signing up or subscribing to a service or product, buying an item, or taking some other action.

Because the action performed by prospective consumers is regarded as the most essential tangible and quantifiable outcome in performance marketing services in kolkata, the cost per acquisition (CPA) is also one of the most critical and popular metrics.

4. LTV

This measure focuses on the expected "Lifetime Value" of a single client throughout their relationship with a brand or firm rather than on a single transaction. Using modern technologies such as predictive analytics, LTV calculates the predicted expenditure of newly acquired consumers based on their continuing behavior.

LTV is quickly becoming a prominent statistic, thanks to the development of more sophisticated measuring capabilities. It assists marketers in planning their entire strategy with the ultimate objective of maximizing return on investment.

The Bottom Line!

Performance marketing is a phrase used to describe internet marketing campaigns. Advertisers pay marketing organizations or advertising platforms based on the outcomes they generate, such as clicks or conversions.