The difference between CPC, CPM, and CPA

The most common method of determining price of a banner ad is in Cost per Thousand Impressions or CPM. For every thousand times your banner ad is displayed, you will be charged x amount of dollars, regardless of how many clicks you receive. CPC or Cost per Click advertising means you will pay a certain price every time your banner ad is clicked on, regardless of how many times it is displayed. CPA or Cost per Action is similar to a revenue share model. In this format, you will not pay for clicks or impressions; rather you will pay each time a certain action is completed, such as a purchase completed. Each method has its pros and cons and each should be investigated when starting a new online advertising campaign.