Advertisers pay based on the number of times their ad is clicked on. This is a good way to drive traffic to your site.

Impressions are essentially views of your ad. With CPM, you pay for every thousand views (so if 25,000 people view your ad, for example, you’d pay your base rate times 25).

With CPS, you only pay when you make a sale that was driven by an ad. This system is also commonly used in affiliate marketing.

Much like cost per sale, with CPL you pay when someone signs up for something, like an email newsletter or webinar. CPL generates leads, so you can follow up with customers and drive sales.

Cost per acquisition is similar to CPL and CPS but is more general. With this structure, advertisers pay when consumers complete a specific action (which could include making a sale, sharing their contact information, visiting your blog, etc.).