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| Anurag Jain |
There are only 3 main types of advertising online platforms mainly:
CPM, CPC and CPA.
Here in
anurag jain virus blog I am illustrating some of the basic facts and difference among them which are in my knowledge. For more information i would recommend to search on google. But here in blog i am just invading internet marketing only for Google and not for yahoo and MSN.
CPM
CPM means Cost Per one Thousand impressions. Here M is the Roman numeral for thousand - and so it is Cost Per one Thousand. This is the amount to pay to the ad-networker or website publishers who will show ads a thousand times on their websites or in their ad-networks.
CPM are much more costlier ads ad they require more space in the networks like images, multimedia or expanded text needs more space and weight. CPM rates were once (pre yr 2000 bubble-burst era) as much as $75, but have now dropped to as little as $1 CPM.
Some points to remember:-
- Rarely used
- Costlier
- Pay per 1000 impressions
- If CPM - CPC compete then use eCPM
- Used for branding and showing the presence of site only
CPC
CPC stands for Cost Per Click. CPC means that how much you would pay the ad-network or website every time a visitor clicks on your ad. Ads whenever clicked you will pay the ad-network or that website. CPC rates can be maximum as $3 per click or minimum as 5 cents per click. It depends on your product and competition. Higher the competition, higher you have to pay to achieve the ranking of the ad.
Some points to remember:-
- Most popular
- Cheaper
- Mannual biding
- Pay per click
- Mainly used for traffic and leads generation
CPA
CPA means Cost Per Acquistion. The Acquistion could be of any types.
- A visitor clicking on your ad and filling up a simple enquiry form for lead generation (CPR - Cost Per Registration)
- If the visitor makes a purchase of some product (CPS - Cost Per sale).
Affiliate - Networks like commissionjunction , infohub, linkshare and clickbank provide statistics to online merchants and publishers on their network of websites which are used for affiliate marketing.
Some points to remember:-
- Very cheaper
- Used for leads generation
- Same as Pay per click
- No mannual biding
- Adwords conversion tracking must be enabled
- Campaign must recieve atleast 15 conversions in 30 days
Another term to be known:
CTR
CTR is Click Through Rate. The percentage rate at which people click on your ads. Suppose for example If your banner ad is seen by 100 people but clicked by one person - then the CTR is 1% calculated as .01
Formerly the CTR was 1%. Due to crisis it became and tumbled down to 1/4 of 1% = 0.25
