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 connection type Traveler 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 connection type ‘Traveler’ during the adserving process. Instead of targeting connection type 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 connection type ID=Traveler .
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 connection type equals Traveler 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.
When to use CPM Ads
Click-through rate (CTR) is the ratio of users who click on a specific link to the number of total users who view a page, email, or advertisement. It is commonly used to measure the success of an online advertising campaign for a particular website as well as the effectiveness of email campaigns.
Click-through rates for ad campaigns vary tremendously. The very first online display ad shown for AT&T on the website HotWired in 1994, had a 4485c44a757c1d99481416dfaa0b97e9102e58e03b9c8c880e522f00914f1b62fc click-through rate. Over time the overall rate users click on webpage banner ads has decreased.
The purpose of click-through rates is to measure the ratio of clicks to impressions of an online ad or email marketing campaign. Generally the higher the CTR the more effective the marketing campaign has been at bringing people to a website. Most commercial websites are designed to elicit some sort of action, whether it be to buy a book, read a news article, watch a music video, or search for a flight. People rarely visit websites with the intention of viewing advertisements, in the same way that few people watch television to view the commercials.
While marketers want to know the reaction of the web visitor, with current technology it is nearly impossible to quantify the emotional reaction to the site and the effect of that site on the firm's brand. However, click-through rate is an easy piece of data to acquire. The click-through rate measures the proportion of visitors who initiated an advertisement that redirected them to another page where they might purchase an item or learn more about a product or service. Forms of interaction with advertisements other than clicking is possible, but rare; "click-through rate" is the most commonly used term to describe the efficacy of an advert.
The click-through rate is the number of times a click is made on the advertisement divided by the total impressions (the number of times an advertisement was served):CTR=Number of click-throughsNumber of impressions×100(85c44a757c1d99481416dfaa0b97e9102e58e03b9c8c880e522f00914f1b62fc)displaystyle textCTR=textNumber of click-throughs over textNumber of impressionstimes 100(85c44a757c1d99481416dfaa0b97e9102e58e03b9c8c880e522f00914f1b62fc)
The click-through rate of an advertisement is defined as the number of clicks on an ad divided by the number of times the ad is shown (impressions), expressed as a percentage. For example, if a banner ad is delivered 100 times (100 impressions) and receives one click, then the click-through rate for the advertisement would be 185c44a757c1d99481416dfaa0b97e9102e58e03b9c8c880e522f00914f1b62fc.
Click-through rates for banner ads have decreased over time. When banner ads first started to appear, it was not uncommon to have rates above five percent. They have fallen since then, currently averaging closer to 0.2 or 0.3 percent. In most cases, a 285c44a757c1d99481416dfaa0b97e9102e58e03b9c8c880e522f00914f1b62fc click-through rate would be considered very successful, though the exact number is hotly debated and would vary depending on the situation. The average click-through rate of 385c44a757c1d99481416dfaa0b97e9102e58e03b9c8c880e522f00914f1b62fc in the 1990s declined to 2.485c44a757c1d99481416dfaa0b97e9102e58e03b9c8c880e522f00914f1b62fc–0.485c44a757c1d99481416dfaa0b97e9102e58e03b9c8c880e522f00914f1b62fc by 2002. Since advertisers typically pay more for a high click-through rate, getting many click-throughs with few purchases is undesirable to advertisers. Similarly, by selecting an appropriate advertising site with high affinity (e.g., a movie magazine for a movie advertisement), the same banner can achieve a substantially higher CTR. Though personalized ads, unusual formats, and more obtrusive ads typically result in higher click-through rates than standard banner ads, overly intrusive ads are often avoided by viewers.
Modern online advertising has moved beyond just using banner ads. Popular search engines allow advertisers to display ads in with the search results triggered by a search user. These ads are usually in text format and may include additional links and information like phone numbers, addresses and specific product pages. This additional information moves away from the poor user experience that can be created from intrusive banner ads and provides useful information to the search user, resulting in higher Click-through rates for this format of Pay Per Click Advertising. Having high click-through rate isn't the only goal for an online advertiser who will occasionally develop campaigns to raise awareness and sacrifice click-through rate for the overall gain of valuable traffic.
Search engine advertising has become a significant element of the Web browsing experience. Choosing the right ads for the query and the order in which they are displayed greatly affects the probability that a user will see and click on each ad. This ranking has a strong impact on the revenue the search engine receives from the ads. Further, showing the user an ad that they prefer to click on improves user satisfaction. For these reasons, there is an increasing interest in accurately estimating the click-through rate of ads in a recommender system.
An email click-through rate is defined as the number of recipients who click one or more links in an email and landed on the sender's website, blog, or other desired destination. More simply, email click-through rates represent the number of clicks that your email generated.
Email click-through rate is expressed as a percentage, and calculated by dividing the number of click throughs by the number of tracked message deliveries.
Most email marketers use this metrics along with open rate, bounce rate and other metrics, to understand the effectiveness and success of their email campaign. In general there is no ideal click-through rate. This metric can vary based on the type of email sent, how frequently emails are sent, how the list of recipients is segmented, how relevant the content of the email is to the audience, and many other factors. Even time of day can affect click-through rate. Sunday appears to generate considerably higher click-through rates on average when compared to the rest of the week.
Every year studies and various types of research are conducted to track the overall effectiveness of click-through rates in email marketing.
Pay Per View (PPV) - The Cheap and Cost Effective Way of Generating Traffic to CPA Offers
All successful advertising campaigns are informed by sound strategy. So, the first step you’ll take toward launching a display campaign is deciding what exactly you want to achieve through the campaign. Common goals for display campaigns include raising brand awareness, increasing website traffic, and lead generation.
To come up with your own campaign goals, ask yourself, “What do I want the audience to do after seeing my ad?”
For example, let’s say you’re the manufacturer of Bass ‘n’ Treble, a brand of headphones. If you want customers to remember your brand as they browse products at their favorite electronics store, you’re looking to raise brand awareness.
On the other hand, if you want them to click on the ad and purchase headphones from your e-commerce website, your goal is to drive sales. Next, you’ll select key performance indicators (KPIs), which are data points that will help you measure whether you’re meeting goals and determine whether the campaign is a success.
Typical KPIs for display ad campaigns include the number of impressions served, the click-through-rates (CTRs) on ads, the ad cost-per-click (CPC), and conversion rates.
At the end of the day your goals will determine the KPIs. For example, if the campaign goal is to build awareness, the primary KPI will be the number of impressions served. If the goal is to drive sales, you’ll focus your attention on conversion rates.