With today’s targeting capabilities in CPM advertising advertisers can now target and optimize the following key metrics in their CPV advertising campaign to make it profitable.
In the top ad networks targeting industry is one of many CPM target add types available in paid traffic for your Pay Per Impression Campaign – including but not limited to:
Demographic Targeting in CPV marketing like age, language, profession, gender, etc.
For mass-market consumer packaged goods, demographic targeting is usually the best option for meeting both awareness and persuasion goals. It is less likely to be useful for other types of categories, except when specific products are used primarily by a particular demographic.
Geographic Targeting in traffic network ads:
country, state, city and exact geo-location on mobile (important in mobile advertising for local business advertising)
Device Type Targeting – essential for banner advertising
Banners have different sizes. Not all fit on the small screen of a mobile device.
- Desktop Advertising
- Mobile Advertising
- Tablet Advertising
All mobile ad networks normally have this distinction in their campaign settings.
Android, Internet Explorer, Firefox, Chrome, Safari, etc.. Depending on your target audience in your web advertising this might become important.
Operating System Targeting: IOS, Windows, MacOS, Linux, Android, MAC OS, BlackBerry OS, etc.
Let’s assume one of your traffic sources doesn’t let you do device targeting but you want to target iPhones and iPads. You can then do so by setting your targeting options to IOS.
Brand Targeting: Samsung, Blackberry, Apple iPhone, BenQ, Dell, Motorola, HP, Asus, Lenovo, etc.
In online advertising it is a proven fact that e.g. iPhone owners appear to have a higher purchasing power than let’s say an Android user. Depending on your price points being able to exclude one or the other can have a massive impact on your conversions and ROI of your paid traffic campaign.
Attitudinal Targeting like interests and values
Behavioral Targeting like surfing- and search-behavior
Behavioral targeting is not a particularly relevant option for mass-market consumer packaged goods, but can be very effective for specialized products. Behavioral targeting is often useful when appropriate contextual inventory is sold out or considered too expensive. Targeting based on search behavior can be particularly helpful for tech products, such as consumer electronics, or categories where good contextual sites are rare.
Targeting of Inferred interests
e.g., car enthusiasts
Predicted response Targeting
e.g., likely to click on car ads
e.g., car activity in past 30 minutes
Contextual Targeting in CPV marketing on site-level, on section-level or on content-level
For durable goods and services, contextual targeting can help increase the chances of reaching people who are in the market for a particular product. However, appropriate contextual sites may be hard to find for some categories such as telecommunications. In those cases, blogs might provide the most relevant setting.
Technographic Targeting: mobile carrier, connection type, Internet Service Provider (ISP), IP address ranges
targeting industry when you buy website traffic from an ad network
Targeting this metric will help you even more to laser-target your audience. The more targeting features the better.
CPV marketing campaign optimization:
The ideal of targeting every message perfectly, let’s consider the possibilities of combining various targeting techniques. Advertisers can run two or more tactics alongside one another.
A website owners or advertiser looks at a few metrics when it comes to CPM advertising and targeting industry.
- The first is the CTR [click-through ratio]. A CTR is determined by the percentage of people that saw the ad and then actually clicked on the ad. If your ad is seen by 1,000 people and 10 people click, that is a 1 percent CTR.”
- The second is the CPV [cost per view]. Self explanatory. This metric reflects the cost per view which you can directly compare to
- the third, which is EPV [earnings per view].
You will need a tracker to sort your campaign data collected for being able to evaluate it by comparing these metrics CPV and EPV directly.
CPM Rates are subject to change in any Pay Per Impression campaign depending on the metrics chosen.
Furthermore a CPM network may offer you the option of using
- Run of network (actually a type of non-targeting). Creating a RON campaign is the quickest way to get all the available traffic from a specific country. There are no keywords, or specific targets involved. Simply choose your geo, destination URL, bid and your campaign is ready to go.
- Retargeting (for sequencing ads or for reconnecting with site visitors)
- Day-parting allows you to set the time window in which you want your CPM ads to be served and seen by your target audience.
- Smart CPM bidding in real time.
Banner Ad Networks
Cost per acquisition (CPA), also known as "Cost per action" or pay per acquisition (PPA) and cost per conversion, is an online advertising pricing model where the advertiser pays for a specified acquisition - for example a sale, click, or form submit (e.g., contact request, newsletter sign up, registration etc.)
Direct response advertisers often consider CPA the optimal way to buy online advertising, as an advertiser only pays for the ad when the desired acquisition has occurred. The desired acquisition to be performed is determined by the advertiser. In affiliate marketing, this means that advertisers only pay the affiliates for leads that result in a desired action such as a sale. This removes the risk for the advertiser because they know in advance that they will not have to pay for bad referrals, and it encourages the affiliate to send good referrals.
Radio and TV stations also sometimes offer unsold inventory on a cost per acquisition basis, but this form of advertising is most often referred to as "per inquiry". Although less common, print media will also sometimes be sold on a CPA basis.
CPA is sometimes referred to as "cost per acquisition", which has to do with the fact that many CPA offers by advertisers are about acquiring something (typically new customers by making sales).
Cost per acquisition (CPA) is calculated as: cost divided by the number of acquisitions. So for example, if one spends £150 on a campaign and gets 10 “acquisitions” this would give a cost per acquisition of £15.
Pay per lead (PPL) is a form of cost per acquisition, with the “acquisition” in this case being the delivery of a lead. Online and Offline advertising payment model in which fees are charged based solely on the delivery of leads.
In a pay per lead agreement, the advertiser only pays for leads delivered under the terms of the agreement. No payment is made for leads that don't meet the agreed upon criteria.
Leads may be delivered by phone under the pay per call model. Conversely, leads may be delivered electronically, such as by email, SMS or a ping/post of the data directly to a database. The information delivered may consist of as little as an email address, or it may involve a detailed profile including multiple contact points and the answers to qualification questions.
There are numerous risks associated with any Pay Per Lead campaign, including the potential for fraudulent activity by incentivized marketing partners. Some fraudulent leads are easy to spot. Nonetheless, it is advisable to make a regular audit of the results.
In cost per lead campaigns, advertisers pay for an interested lead (hence, cost per lead) — i.e. the contact information of a person interested in the advertiser's product or service. CPL campaigns are suitable for brand marketers and direct response marketers looking to engage consumers at multiple touch points — by building a newsletter list, community site, reward program or member acquisition program.
In CPA campaigns, the advertiser typically pays for a completed sale involving a credit card transaction.
There are other important differentiators:
Pay per click (PPC) and cost per click (CPC) are both forms of CPA (cost per action) with the action being a click. PPC is generally used to refer to paid search marketing such as Google's AdSense or Ad Words. The advertiser pays each time someone clicks on their text or display ad.
Cost per click on the other hand is generally used for everything else including, email marketing, display, contextual and more.
Also, pay per download (PPD) is another form of CPA, where the user completes an action to download a specified file.
With payment of CPA campaigns being on an “action” being delivered, accurate tracking is of prime importance to media owners.
This is a complex subject in itself, however if usually performed in three main ways:
- Cookie tracking – when a media owner drives a click a cookie is dropped on the prospect's computer which is linked back to the media owner when the “action” is performed.
- Telephone tracking – unique telephone numbers are used per instance of a campaign. So media owner XYZ would have their own unique phone number for an offer and when this number is called any resulting “actions” are allocated to media owner XYZ. Often payouts are based on a length of call (commonly 90 seconds) – if a call goes over 90 seconds it is viewed that there is a genuine interest and a “lead” is paid for.
- Promotional codes – promotional or voucher codes are commonly used for tracking retail campaigns. The prospect is asked to use a code at the checkout to qualify for an offer. The code can then be matched back to the media owner who drove the sale.
A related term, effective cost per action (eCPA), is used to measure the effectiveness of advertising inventory purchased (by the advertiser) via a cost per click, cost per impression, or cost per thousand basis.
In other words, the eCPA tells the advertiser what they would have paid if they had purchased the advertising inventory on a cost per action basis (instead of a cost per click, cost per impression, or cost per mille/thousand basis).
If the advertiser is purchasing inventory with a CPA target, instead of paying per action at a fixed rate, the goal of the effective CPA (eCPA) should always be below the maximum CPA. As described by Yang's Law, eCPA
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