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 Hobbies 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 ‘Hobbies’ 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=Hobbies .
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 Hobbies 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.
Cost per action
Normally you enter each traffic auction (separate for each impression) with the Max Bid you set for your campaign. In case you are the highest bidder, you will be charged 1085c44a757c1d99481416dfaa0b97e9102e58e03b9c8c880e522f00914f1b62fc more than the next bidder in line, but not more than your Max Bid. For example, if you offer 0.005 as your max bid and there are two other bidders, the bidding line might look like this:
0.005 - your bid 0.003 - some other advertiser's bid 0.0025 - some other advertiser's bid
In such case you are winning the impression, as you are the highest bidder. You will be charged 1085c44a757c1d99481416dfaa0b97e9102e58e03b9c8c880e522f00914f1b62fc more than the next bidder in line, that is 1.10*0.003 = 0.0033. Because of that, your average traffic CPM rate will usually be below your Max Bid multiplied by 1000.
Whereas the Smart Bid system helps you to reach more traffic within the same Max Bid by real-time monitoring of bidding market and your bidding position and adjusting bidding parameters for each auction. It is based on the regular bidding system and that is how your campaign will start. Once it starts getting traffic, Smart CPM will monitor your campaign average CPM bid and compare it with your Max Bid.
If on average you are spending less than your Max Bid per impression, Smart CPM bidding will start increasing Max Bid for part of auctions to win traffic you would have not won with normal Bidding. Let's take the example from regular bidding system - you are bidding 0.005 and you are spending 0.0033 on average which brings you 100k impressions per day (sample value). Smart CPM will notice it and might for example increase your max bid to 0.007 for 5085c44a757c1d99481416dfaa0b97e9102e58e03b9c8c880e522f00914f1b62fc of auctions delivering you another 100k impressions per day. Still, your average CPM rate will stay below or around $5.00 CPM.
Butt the Smart CPM bidding system is far more advanced than that. It monitors your campaign continuously and increases the Max Bid boosting little by little to ensure that you get maximal traffic within your Max Bid setting. To work, Smart CPM Bidding needs to have certain level of traffic speed first to correctly analyse data. If the campaign is winning less than 30 auctions in five minutes, it will not be able to work. It will also need some time to correctly adjust parameters - the faster your campaign is getting traffic, the faster and more accurately Smart Bid system can adjust bidding parameters.
Pay Per View Trumps Pay Per Click Advertising
If you're new to internet marketing, you may have heard of Google's AdSense network which has allowed many to make a living online. But you may be wondering are there other alternatives? Google AdSense is a form of a banner ad network, and there are many around. Typically, the way banner ad networks work is that you would sign up with them, have an account created, and they will supply you with their banner ads.
Relevant Ads Are Key
Their ads are mostly tailored to suit your website's niche, so you would end up serving relevant ads to your traffic. Imagine it as a clearinghouse connecting an advertiser intending to get his work published to the world, and your website serves this purpose, and as a result, you would be compensated with advertising fees.
Keep Your Audience's Experience In Mind
Keep in mind always, the key to monetizing your website is in the traffic and audience you generate. If you serve constant irritating pop-ups, or an absurd and unnecessarily high amount of banner ads all over your website, your visitors will be affected and you would immediately notice a much higher bounce rate.
Hence, just keep your ads nice and neat, and you will be fine.
Advertising CPM: Smart Bidding