CPM, CPC and CPA: how online ads are priced
Four ways to pay for an ad. One formula to compare them all.
Facts checked 3 Oct 2026 · by the AdSworn team
CPM is the cost per thousand impressions, CPC is the cost per click, and CPA is the cost per action (a sale or sign-up). A flat fee is a set price for a set period. To compare any two offers, convert them to the same unit: cost ÷ impressions × 1,000 gives the CPM, and cost ÷ clicks gives the CPC.
The four pricing models
| Model | You pay for | Who carries the risk | Common in |
|---|---|---|---|
| CPM | Every 1,000 impressions | You: you pay whether or not anyone clicks | Display, social, networks |
| CPC | Each click | Shared: you pay only for visits, not for what they do next | Search ads |
| CPA | Each conversion (or a target average per conversion) | Mostly the platform | Automated bidding, affiliate deals |
| Flat fee | A placement for a set period | You, on the audience; the price is known up front | Direct sponsorships |
How Google defines them
- CPC: Google Ads says you set a maximum bid per click; that's the most you'll typically be charged, and you'll often be charged less. The final amount is your actual CPC.
- CPM: you pay per thousand impressions on the Google Display Network. Google now uses viewable CPM (vCPM), so you pay only when ads can be seen.
- CPA: with Target CPA bidding you set the average cost per conversion you want, and Google sets bids based on how likely each ad is to convert.
How to compare any two prices
- To a CPMPrice ÷ impressions (or page views) × 1,000.
- To a CPCPrice ÷ clicks.
- To a CPAPrice ÷ sales or sign-ups.
A page with 2,000 page views every 4 weeks sells a 4-week banner for $30: $30 ÷ 2,000 × 1,000 = $15 CPM. If that banner brings 20 clicks, it's $1.50 per click. If 2 of those visitors buy, it's $15 per sale. The price was fixed before the ad ran; the CPC and CPA depend on the ad and the page.
What these prices look like in the market
| Source | Price per 1,000 |
|---|---|
| Directly sold ads (Google News Initiative average) | $10–20 CPM |
| Programmatic ads (same source) | $1–5 CPM |
| Carbon Ads, a developer and creator network | $5–6 CPM |
| AdSworn starter rates | $15 per 1,000 page views for a banner; $20 per 1,000 over a year for a featured post |
Direct ads cost more per thousand because you choose the exact place and nobody else's ad shares it. Whether that's worth it depends on who's reading.
| Format on “The 12 Best Online Video Editors of 2026 (Free and Paid)” | Advertiser pays | AdSworn (8%) | Publisher gets |
|---|---|---|---|
| Banner ad / 4 weeks | $25 | $2 | $23 |
| Featured post / year | $2,000 | $160 | $1,840 |
Which model should you choose?
- You need sales now and can track them: CPC or CPA.
- You want to be seen by a known audience: CPM or a flat fee.
- You want a known cost and a specific page: a flat fee, converted to CPM so you can compare.
| Page | Audience, last 4 weeks | Banner / 4 weeks | Featured / year |
|---|---|---|---|
| The History Of The MrBeast Logohatchwise.com | 352 page views | $25 | $185 |
| The Best Freelance Marketplaces (UPDATED 2026)hatchwise.com | 104 page views | $25 | $150 |
| The 12 Best Online Video Editors of 2026 (Free and Paid)Flocksy | 126 page views | $25 | $2,000 |
| Famous Brands And Their Historieshatchwise.com | 215 page views | $25 | $150 |
| The 8 Best Video Editing Apps for iPhone and Android (2026)Flocksy | 189 page views | $25 | – |
| The Complete History Of The SIG Sauer Logo – Logo Design Magazinelogodesign.org | 104 page views | $25 | $150 |
Straight answers
What does CPM stand for?
Cost per mille: the cost per thousand impressions. 'Mille' is Latin for thousand.
Is CPC or CPM better?
Neither is better in general. CPC suits ads meant to drive visits you can measure; CPM suits ads meant to be seen. Convert both to the same unit before comparing.
How do I calculate CPM?
Divide the price by the number of impressions and multiply by 1,000. A $30 ad shown 2,000 times has a $15 CPM.
What is a flat-fee sponsorship?
A set price for a placement over a set period, agreed before it runs. Most direct sponsorships work this way.