If you have an online business; you will understand the importance of online advertisement. Which is why I will be sharing with you some of the advertisement options available. So that you know what to do when the need arises.
However, there are basically two popular types of advertisement, which are CPM and PPC.
CPMs are billed at a flat rate per 1,000 “impressions.” An impression is a measure of the number of times an ad is displayed or has left an impression on a user, regardless if it was actually clicked on or not. You’re not charged additionally for any clicks that the ad receives.
CPMs usually displayed ads (meaning that they are visual), but not always.
- CPM rates are usually pretty inexpensive.
- It’s easy to apply a budget that makes sense for you since you’re paying only for a certain amount of views, which gives you more control over how much you spend.
- CPMs guarantee that your ad will be shown the number of times that you want it to be seen.
- If people don’t click on your ads and convert to customers, you risk overspending.
- Its difficult to quantify the return of your traffic buy until the end of the campaign.
- Rush of resulting web traffic is uncommon. Actually, it’s so uncommon that you are more likely to complete NAVY SEAL training than click a banner ad.
Pay per click (PPC)
PPC (also known cost per click or “CPC”) do exactly what they say on the tin: They’re ads that are paid for only when someone actually clicks on them. This means that you don’t pay if nobody sees your ads, and even when they do see your ad, you don’t pay unless they actually click on it. These ads are usually shown in text form, possibly with a smaller image.
The price that you pay per click is determined by the marketplace value of the keyword or expression you’re interested in. This is calculated by your ads quality score and the competition for the said keyword you want to target.
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- Unlike impressions, clicks are extremely straightforward to track. Someone either did or didn’t click on your ad.
- You only pay for the clicks you need.
- There’s less of a risk for overspending on ads that aren’t converting, because you’re only paying for traffic that’s actually directed to your site.
- You’re able to place budget caps on traffic coming in through large networks (again, so you don’t overspend).
- CPCs and budgets are modifiable in real time.
- Well-optimized PPC campaigns can bring in significant traffic.
- For marketers who track ROI, PPC advertising can be a much more cost-effective way to get traffic than CPM.
- Because you’re competing with other advertisers for traffic, this can sometimes cause PPCs to become expensive and unaffordable.
- But, if you’re not bidding with a competitive PPC, it’s possible that you won’t get any traffic.
- Just because a click didn’t convert to a paying customer straight away, doesn’t mean that they might not become one later on. Attribution models must be able to handle this accurately.
- It can be complicated, and you really need to know what you’re doing to see an ROI.
- You might lose money at the start, before you optimize over time.
- Just because someone clicks on your ads, doesn’t mean that they have any interest in your offer. 50% of clicks on static mobile banner ads are accidental.
CPA and Revshare
Less common forms of online advertising include CPA and Revshare models. CPA (cost per acquisition) is a model of online advertising where advertisers only pay per lead is generated. Revshare, where you receive a portion of the profits from the client you’re referring.
Retargeting (also known as remarketing) can also be a very effective marketing strategy, but your site has to have a decent amount of traffic (at least 5k visitors a month) in order for it to be effective.