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Cost Per Purchase (CPP)

February 18, 2023

Cost per purchase (CPP) is a pricing model used in online advertising that refers to the cost an advertiser pays each time a purchase is made due to one of their ads. In CPP advertising, an advertiser sets a maximum bid, the highest amount they are willing to pay per purchase. The advertiser is then charged each time a purchase is made up to the maximum bid amount.

Cost per purchase (CPP) is a popular pricing model for e-commerce and direct-response advertising. It aligns the interests of the advertiser and the publisher, as both parties only make money when a purchase is made. Cost per purchase (CPP) is commonly used for campaigns that focus on driving sales, such as product launches, clearance events, or holiday promotions.

The cost per purchase can vary widely depending on several factors, including the competition for the targeted audience, the advertiser’s maximum bid, and the relevance and quality of the ad. More competitive audiences and products tend to have higher CPPs, while high-quality ads with relevant content and targeting are more likely to have lower CPPs.

Also, See: Cost Per Action (CPA)

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