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Pricing models[ edit ] There are four common pricing models used in the online performance advertising market. CPM cost-per-mille, or cost-per-thousand pricing models charge advertisers for impressions, i. Display advertising is commonly sold on a CPM pricing model. The problem with CPM advertising is that advertisers are charged even if the target audience does not click on the advertisement. CPC cost-per-click advertising overcomes this problem by charging advertisers only when the consumer clicks on the advertisement. However, due to increased competition, search keywords have become very expensive. In recent times, there has been a rapid increase in online lead generation — banner and direct response advertising that works off a CPL pricing model. Advertisement And Product Placement Advertisements Are Becoming.