What is CPA and CPM?

Well, CPA in full is 'cost per action.' It is a kind of advertising method that requires action beyond just clicking. That is before money can be paid to the publisher or deducted from the advertiser, someone must click on the ad, then take the action required by the advertiser. The action could be buying a product, making a registration etc.

CPM on the other hand is referred to as Cost Per Motion. This kind of ad is based on impressions a particular ad code received. That is when the page that has the code on was accessed, the number of times the code was also effective(loaded).

Hence, CPM are mostly paid by thousand, that is an advertiser could offer 1dollar for every one thousand times the ad code was loaded.

I hope this helps.
 
Let me also add this, if you are considering choosing between CPA and CPM, it is better to go for CPM because it requires little effort from you to generate revenue. Since, users don't really need to click on adverts before you'd be paid.

However, CPA on the other hand isn't all that easy as you'll need to make special efforts to get users to complete the action required on their part using your own special link.

NOTE: my preference here is based on the fact that provided you have options from choosing either one of the two.
 
If you are an advertiser, it's generally preferable to purchase leads on a CPA basis. This way, you don't assume as much of a risk for the quality of the traffic. You only pay for real conversions on your site. When you are purchasing traffic on a CPM basis, you have no idea where that traffic is coming from in many instances, and it's kind of like playing whack a mole to weed out poor performing sources that are draining your budget. If you think of AdWords/AdSense for example, there are millions of low quality AdSense sites out there driving traffic on a CPM basis. In many cases, the site owners might set up a fake bot, or trick users into clicking on ads when in reality they have no intention of converting.
 
OhioTom76 said:
If you are an advertiser, it's generally preferable to purchase leads on a CPA basis. This way, you don't assume as much of a risk for the quality of the traffic. You only pay for real conversions on your site. When you are purchasing traffic on a CPM basis, you have no idea where that traffic is coming from in many instances, and it's kind of like playing whack a mole to weed out poor performing sources that are draining your budget. If you think of AdWords/AdSense for example, there are millions of low quality AdSense sites out there driving traffic on a CPM basis. In many cases, the site owners might set up a fake bot, or trick users into clicking on ads when in reality they have no intention of converting.
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Very true. Publishers can really get very dishonest at times, they just want to earn without giving a care in the word about the advertiser that is paying them. However, with CPA, advertisers are really guaranteed of using their money effectively.
 
CPM and CPA are complementary advertising buys that fill different needs. CPM brands, while CPA primarily drives response. CPM can also be used for direct marketing. (Remember, direct response doesn't work for every product.)
 
CPM is cost per mile & CPA is cost per action. CPA is the best deal of all for Advertisers in terms of risk because they only pay for media when it results in a sale, or conversion against their campaign goal. At this level, Marketers can pick the most they’re willing to spend for a sale and can basically set an unlimited budget and forget about it.
 
CPM

CPM means Cost Per Thousand. (M is the Roman numeral for thousand – and so Cost Per Thousand).

This is the amount you will pay the ad-network or website publisher to show your ad a thousand times on their website or across their ad-network.

Whether your ad is shown only once to each visitor (Unique Impressions) or any number of times – is something that you will have to work out with the nad-network or the website.

CPM rates were once (pre yr 2000 bubble-burst era) as much as $75, but have now dropped to as little as $1 CPM.


CPA

CPA means Cost Per Action. The Action could be any of the following types of actions – A visitor clicking on your banner coming to your site and filling up a simple enquiry form (CPR – Cost Per Registration) , or if the visitor makes a purchase (CPS – Cost Per sale). It could be a flat fee or a percentage commission of the sale made.
 
CPA (Cost Per Action) – The cost paid per qualified action (click, sale, registration) from an online advertisement or affiliate link.

CPM (Cost Per thousand impressions) – An agreed upon price paid to a content site for displaying an advertiser’s banner a thousand times. “M” represents the Roman numeral for 1000.
 
CPA (Cost Per Action) – The cost paid per qualified action (click, sale, registration) from an online advertisement or affiliate link.
CPM (Cost Per thousand impressions) – An agreed upon price paid to a content site for displaying an advertiser’s banner a thousand times. “M” represents the Roman numeral for 1000.
 
Difference Between CPA & CPM:

Cost Per Action or CPAis an online advertising pricing model, where the advertiser pays for each specified action

The CPM model refers to advertising bought on the basis of impression. This is in contrast to the various types of pay-for-performance advertising, whereby payment is only triggered by a mutually agreed upon activity (i.e. click-through, registration, sale).
 
CPA is Cost Per Acquisition. This is the term bidding term related to PPC - Google AdWords where you can target your campaign in CPA bidding method if you will get minimum 15 conversions in a month. And CPM is also a bidding term which means Cost Per thousand impressions where you will target your campaign through CPM bidding method.
 
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