Digital measurement terms: CPC, CPM, CTR

Digital is every where and it makes us crazy with new Tech, AD and measurement terms. I here by summarized principle measurement terms like CPC, CPM, CTR.

CPC(Cost Per Click) / PPC(Pay Per Click): get paid for each click. Click on Advertising.

  • eg. CPC is used with email AD, Display AD or Search Keyword
  • eg. PPC is used with Google AD platform

CPM(Cost Per Mile): Cost per Thousand Impression

  • Pay for every 1,000 impressions.
  • Even customers are not clicks AD, get paid for every 1,000 times
  • eg. Per impression cost = CPM rate($)/1,000

CTR(Click Through Rate): Number of customers clicked

  • eg. CTR rate(%) = (Clicks/Impressions)x100 … if a keyword showed 1,000 times and 10 customers clicked that keyword, CTR rate(%) = (10/1,000)x100=1%

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