Online performance advertising is wherein the payment is based on the performance of the ad. The advertisers in this case rely on the CPM mode, CPC ads CPL ads or choose the CPA ads.
The CPM ads refer to the system where the advertisers incur cost per mille. Mille here means thousand so he needs to pay a particular amount for 1000 impressions. So whether the user clicks on the ad or not, the advertiser stills needs to pay for impression. The CPC ads are the Cost per Click module. In this kind of ad campaign, the advertiser needs to pay a certain amount of money to the publisher only when a user clicks on the ad and is diverted to his website. This kind of online performance advertising is more popular with the advertisers. The CPA ads are Cost per action ads wherein the advertiser needs to pay only when a visitor diverted from another site does some action. This action can be in the form buying something or can also be related subscribing to the ad. The CPL online performance advertisement are considered to be most advertiser friendly as in this kind of ads the advertiser has to play only when his ads are able to generate leads.