The component of digital marketing are many , but when One is going to invest in digital marketing, or when Digital marketing plan is to be incorporated, there are many parameter one has to take care of, Which includes deciding of lead acquiring or Order Acquiring.
CPO ( Cost Per Order ) In CPO, publisher ( blog/website) will be reimbursed if purchase is done for the advertiser. This is the most common marketing order generation mechanism. All big name like Flipkart, Amazon and Product oriented Organization like tour operators, insurance companies use this advertising model.
CPL ( Cost Per Lead ) In CPL, Publisher is being paid for every lead which he generates and the mail id , contact no is being registered. This Advertisement model is very common where there is large no of lead are involved, They are used by Educational websites like Shiksha.com etc.
The common factor in CPO and CPL is that publisher is paid only if the user has performed an action
CPC (Cost per Click) The google Adword program is based on CPC, hear the user just needs to click on the ads.
CPM (Cost Per Mille/ cost per thousand impression) The purpose of the CPM metric is to compare costs of advertising campaigns within and across different media. A typical advertising campaign might try to reach potential consumers in multiple locations and through various media. The cost per thousand impressions (CPM) metric enables marketers to make cost comparisons between these media, both at the planning stage and during reviews of past campaign. We at Ads Matters offering CPM service with high quality of ROI.
Benefits of CPO / CPL for Advertiser over CPC:
The major benefit that advertisers have is this that they can calculate how much to pay per action. If the advertiser know that a new customer in the section will give $100 which is the profit of $20, they can calculate and pay. The cost per lead is generally calculated by percentage of profit which varies from 4 to 20 %. The Ads can remain for unlimited period of time as no connection with impressions.
Disadvantages of the CPO / CPL for advertisers:
Disadvantage could be that it is difficult to find publishers who want to publish in CPO / CPL campaigns.
Benefits of CPO / CPL for Publisher over CPC:
Cost per lead or order is much higher than CPM or CPC
Disadvantages of the CPO / CPL for Publishers:
Miss on conversion capturing can lead to loss for publisher
Summary of CPM, CPC, CPL and CPO:
Each model has certain advantages and disadvantages. The CPM is an extreme on one side, CPO / CPL are the extremes on the other side. The CPC model is somewhere between these two extremes and th erefore enjoys such great popularity well.
You may also want to update yourself on Search Engine optimization, before integrating the plan.
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