Payment Model

# Overview

Digital advertising platforms use various pricing models to charge advertisers based on specific user actions. These models align campaign goals with advertiser budgets and desired outcomes. Below are the key types used across the industry.

# Payment Models Explained

# CPC — Cost Per Click

Advertisers are charged only when users click the ad, regardless of impressions.

  • Goal: Drive website traffic.
  • Best for: Brand visibility, traffic acquisition.
  • Platforms: Google Ads, Facebook Ads

Example: 300 clicks × $0.50 = $150

# CPL — Cost Per Lead

Advertisers pay when users submit contact details or express interest.

  • Goal: Generate leads for sales teams.
  • Best for: B2B, SaaS, real estate.
  • Conversion: Form submissions, signup recordings.

Example: 40 leads × $15 = $600

# CPD — Cost Per Day

A flat daily rate for ad placement, common on premium digital properties.

  • Goal: Maximize exposure over fixed durations.
  • Best for: Brand awareness.
  • Platforms: News portals, large social platforms.

Example: $1,000/day × 5 days = $5,000

# CPA — Cost Per Acquisition

Advertisers pay only for completed actions such as purchases or signups.

  • Goal: Pay only for results that matter.
  • Best for: E-commerce, subscriptions.
  • Measurement: Pixel or API-based tracking.

Example: 30 acquisitions × $25 = $750

# CPI — Cost Per Install

Advertisers pay when users install their mobile apps.

  • Goal: Grow mobile app user base.
  • Best for: App developers, startups.
  • Tracking: SDKs or tracking URLs.

Example: 2,000 installs × $1.20 = $2,400

# CPS — Cost Per Sale

Advertisers pay only when a sale is made, common in affiliate marketing.

  • Goal: Revenue-driven results.
  • Best for: E-commerce, affiliate channels.
  • Model: Common in influencer marketing.

Example: 100 sales × $8 = $800

# CPR — Cost Per Registration

Advertisers pay when users register or sign up after clicking an ad.

  • Goal: Grow user database or membership.
  • Best for: SaaS, webinars, newsletters.
  • Outcome: Verified registration events.

Example: 500 registrations × $4 = $2,000

# CPM — Cost Per Mille

Advertisers pay per 1,000 impressions regardless of interaction.

  • Goal: Maximize brand visibility.
  • Best for: Mass awareness campaigns.
  • Standard: $1–$20 depending on the platform.

Example: 200,000 impressions × $3 = $600

# CPE — Cost Per Engagement

Payment occurs when users interact with the ad (likes, shares, comments).

  • Goal: Boost engagement signals.
  • Best for: Social media campaigns.
  • Examples: Polls, likes, retweets.

Example: 1,000 engagements × $0.50 = $500

# CPCV — Cost Per Completed View

Advertisers pay when a video is watched completely.

  • Goal: Deliver full message impact.
  • Best for: Video storytelling.
  • Completion: 100% video watch required.

Example: 10,000 full views × $0.40 = $4,000

# CPV — Cost Per View

Advertisers pay when a video begins playing after a set duration.

  • Goal: Distribute video content widely.
  • Best for: Short-term promotions.
  • View: Charged at 5–30 seconds of play.

Example: 50,000 views × $0.05 = $2,500

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