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what is PPC, CPC, CPM, CPI, CPA, PPA, KPI, ROI, CTR, eCPM, VTR



marketing shortcuts:

PPC - Pay Per Click

    Synonomous with digital advertising. It's a process or a method to drive traffic to your website.

CPC - Cost Per Click

        This is closely related to PPC but this indicates the actual amount of money you are charged each time a prospect clicks on one of your ads as part of your PPC efforts, which are part of your SEM efforts. The goal is to keep this as low as possible. (PPC is just one form of paid, or Search Engine Marketing, traffic.)

CPM - Cost Per Mille

or CPI - Cost Per Impression


 (M is the Latin letter for "thousand" meaning "1,000 impressions.")
        CPM is related to CPC but instead of being charged when someone clicks your ad or link you are charged every time your ad simply appears on a page.

        You would run a CPM campaign if your goal was to raise awareness or maybe test a new medium or channel but you need to be careful with them.

        They can run around the clock, show your ad everywhere and you can quickly find yourself running up a large advertising bill with little to show for it.

        However, as the world has become increasingly mobile, studies have shown that upwards of 60% of advertising clicks on mobile are accidental.

        That being the case, CPM or CPA (see below) could prove to be more profitable.

CPA - Cost Per Action

or PPA - Pay Per Action

CPL - Cost Per Lead

CPS - Cost Per Sale

(You only pay when specific actions occur such as a purchase, a web form is submitted, etc.)

    This assumes the "action" is beyond the click.

    When running a CPA campaign you would establish goals that could be tracked and then pay (probably a higher amount than CPC) when those goals are achieved.

KPI - Key Performance Indicators

        If you don't know what's important, then you either won't start your advertising campaigns or you'll try to do too much and overspend until you're broke.

        In all things, begin with the end in mind.

        That's why I have the PBL (Process Before Login) Video and IPA (Initial Process Assessment) that begins with an in-depth analysis of what's working, what isn't, and what you want to achieve and we do that before we ever login to any CRM, ad platform, marketing automation tool, SEO program, etc.)

ROI - Return on Investment

        When you invest your hard-earned dollars into anything—raw materials, staff, contractors, advertising—you do so with the expectation that those investment dollars will return and bring along a lot of "friends."

        Maybe your best way of growing your revenue is to hire more sales people or pay higher commissions to joint venture partners that will promote on your behalf.

        The main point is that you must track how you spend your money if you are serious about growing your sales, revenue, and profitability.

CTR - (Click Through Rate)

or VTR - (View Through Rate)

This is a vital metric that will help you keep costs down and gain the best traffic to yoru website.
Your CTR will be altered depending on your choice of advert text, imagery and general appeal, it will also be affected by other details like who you target, when and where so is a very complex statistic when looked into deeply.
Your CTR (click through rate) will be a sign of the success of your online advertising program or campaign as it will show you how many clicks you are obtaining for impression served.
This means that you calculate your CTR by adding the number of clicks you have on an advert and dividing this by the page impressions, page views or queries that have been received/provided.

eCPM - (Effective Cost Per Thousand Impressions)

if you are an advertiser you can use eCPM to work out how much it will cost to have an ad placed on a particular website, this can be helpful if you have a limited budget but really like one publisher and want to be seen on their website with your advert.
Different pages/sites will have different eCPM figures also as some may be much more popular than others, so this will change how much a publisher charges (depending on perceived value and traffic to that page/website).

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