When you get traffic from traffic sources like Add Words or Facebook CPM or use any other ad network for your digital advertising such as banner advertising, popunders, in app video ads or any type of online, visually-based ad, and Targeting Niche Business Opportunity you can use the CPM, CPV (cost per view), EPV (earnings per view) and CTR (click through rate) numbers to figure out if you are getting a decent CPC. CPC is easy to calculate: If you spend $1 to get 1,000 impressions ($1 CPM) and you get 10 clicks (effective 1 percent CTR), then you paid $1 CPM and received a $0.10 CPC.
The Top Ad Networks allow you using dynamic URL tags. These are special tokens you can use in the URL field when buying traffic and creating a CPM marketing campaign that will be replaced with the actual information e.g. Targeting Niche ‘Business Opportunity’ during the adserving process. Instead of Targeting Niche there could be any other token from this list below or even a combination of various tokens:
- [ISPID] – ID of ISP of visitor,
- [ISPNAME] – Name of ISP of visitor,
- [COUNTRY] – country of the visitor.
- [BID] – CPM price of the impression.
- [SCREENRESOLUTION] – Detected screen resolution of the visitor,
- [OSNAME] – Operating System name, for example Windows 8.1,
- [BROWSERNAME] – Browser name, for example Firefox 32,
- [DEVICENAME] – Name of the device that visitor uses to browse the Internet, for example Apple iPhone,
- [OSID] – ID of Operating System (for future use),
- [BROWSERID] – ID of Browser (for future use),
- [DEVICEID] – ID of Device (for future use),
- [IP] – IP address of the visitor (used for XML feeds).
For example, if you buy traffic from a lead source or an advertising network and drive that traffic to http://www.yourlandingpage.com/track.php?countryid=[COUNTRYID] these platforms will normally change the token into actual value. Here’s a populated link just as an example: http://www.yourlandingpage.com/track.php?Targeting Niche ID=Business Opportunity .
Later you can use Website targeting option to block and blacklist under-performing websites and/or you can create campaigns targeted towards the best performing whitelisted ones.
You may also arrange rules using these tokens in your tracking system. E.g.: If Targeting Niche equals Business Opportunity then redirect to some other page. Off page cloaking is one of the main reasons to apply such rules.
Display ad networks will also provide Smart CPM – a bid system that helps you to reach more traffic within the same Max Bid by realtime monitoring of bidding market and your bidding position and adjusting bidding parameters for each auction.
The process of defining target audiences is closely tied to campaign goals. Target audiences are those ideal people you want to reach through your campaign. While advertising on the Internet gives you the ability to reach a large and diverse set of people, clearly defining target audiences is important because your ads will not resonate with everyone equally. Some people just aren’t looking to buy your product or service, and displaying your ads to these people is a waste of your marketing dollars.
So how do you ensure you’re targeting the right people? Well, if you’re like most marketers, odds are you’ve already created customer profiles or buyer personas. These are descriptions of your typical customers based on demographic, psychographic and behavioral attributes. You can use these descriptions to determine who you’ll target through the display CPM campaign.
To illustrate how you’ll do this, let’s return to our headphones example. Bass ‘n’ Treble knows, through creating customer profiles based on primary research and past customers, that their typical buyers are males, between the ages of 18-35, who enjoy electronic music, and also like to spend time on outdoor activities such as hiking and camping. Bass ‘n’ Treble can now use this information to set up a national campaign to reach people who fit this exact description. The headphone manufacturer can also use the information about their target audience’s behavior to create ads that will appeal to them and place them where they’re most likely to be seen. They also have the option to retarget those who have visited their website but not taken a desired action, such as filling out a form or making a purchase.
Understanding the PPV Audience
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
Negative Branding and PPV - No Cause For Alarm