About Pricing models in affiliate marketing
At HilltopAds, you can buy traffic by CPM, CPC or CPA pricing models.
What is CPM?
CPM (cost-per-mile) is a price for every 1,000 impressions of your ads. The formula for calculating CPM is as follows:
CPM = (total cost / number of impressions) * 1,000
For example:
You spent $100 (total cost) for running an ad campaign;
The campaign got 200,000 impressions (number of impressions).
Let us calculate CPM:
CPM = (100 / 200,000) * 1,000 = $0.5
The result means that you pay $0.5 for each 1,000 impression.
When you know a CPM rate, you can calculate a potential cost of the required number of impressions.
In our example, the CPM rate is $0.5. Let us calculate how much will you pay for 500,000 impressions:
Cost = (CPM * number of impressions) / 1,000 = (0.5 * 500,000) / 1,000 = $250.
Please note, CPM rates are dynamical parameter, so it can be changed at any time.
Typically, CPM rates depend on advertiser demand for traffic quality, GEO, advertising formats, etc.
What is CPC?
CPC (cost-per-click) is a price for every clicks on your ads. The formula for calculating CPC is as follows:
CPC = total cost / number of clicks
For example:
You spent $100 (total cost) for running an ad campaign;
The campaign got 200 clicks (number of clicks).
Let us calculate CPC:
CPC = 100 / 200 = $0.5
The result means that you pay $0.5 for each 1 click.
When you know a CPC rate, you can calculate a potential cost of the required number of clicks.
In our example, the CPC rate is $0.5. Let us calculate how much will you pay for 500 clicks:
Cost = CPC * number of impressions = 0.5 * 500 = $250.
Please note, CPC rates are dynamical parameter, so it can be changed at any time.
Typically, CPC rates depend on advertiser demand for traffic quality, GEO, advertising formats, etc.
What is CPA?
CPA (cost-per-action) is a price for every targeted actions with your ads - conversions. For example, for purchase, registration, filling in a form, etc. The formula for calculating CPA is as follows:
CPA = total cost / number of actions (conversions)
For example:
You spent $100 (total cost) for running an ad campaign;
And got 5 registrations (number of actions).
Let us calculate CPA:
CPA = 100 / 5 = $20
The result means that you pay $20 for each 1 registration (the required targeted action - conversion).
When you know a CPA rate, you can calculate a potential cost of the required number of actions.
In our example, the CPA rate is $20. Let us calculate how much will you pay for 50 actions:
Cost = CPA * number of actions = 20 * 50 = $1,000.
Please note, CPA rates are dynamical parameter, so it can be changed at any time.
Typically, CPA rates depend on advertiser demand for traffic quality, GEO, advertising formats, etc.
What pricing models can you use to run ad campaigns?
Popunder ad format
You can run both popunder mobile and desktop ad campaigns only by CPM on self-serve HilltopAds platform.
In-Page ad format
You can run both In-Page mobile and desktop ad campaigns by CPM or CPC on self-serve HilltopAds platform.
Video ad format
You can run both Video VAST/VPAID mobile and desktop ad campaigns by CPM or CPC on self-serve HilltopAds platform.
Banner ad format
You can run both Banner mobile and desktop ad campaigns only by CPC on self-serve HilltopAds platform.
If you want to work with HilltopAds by CPA, please contact your manager. The CPA pricing model is only available upon request.