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.
Behavioral Targeting in CPV Marketing
Cost per impression (CPI), or "cost per thousand impressions" (CPM), is a term used in traditional advertising media selection, as well as online advertising and marketing related to web traffic. It refers to the cost of traditional advertising or internet marketing or email advertising campaigns, where advertisers pay each time an ad is displayed. CPI is the cost or expense incurred for each potential customer who views the advertisement(s), while CPM refers to the cost or expense incurred for every thousand potential customers who view the advertisement(s). CPM is an initialism for cost per mille, with mille being Latin for thousand.
Cost per impression, along with Pay-per-click (PPC) and cost per order, is used to assess the cost effectiveness and profitability of online advertising. CPI is the closest online advertising strategy to those offered in other media such as television, radio or print, which sell advertising based on estimated viewership, listenership or readership. CPI provides a comparable measure to contrast internet advertising with other media.
An impression is the display of an ad to a user while viewing a web page. A single web page may contain multiple ads. In such cases, a single pageview would result in one impression for each ad displayed. In order to count the impressions served as accurately as possible and prevent fraud, an ad server may exclude certain non-qualifying activities such as page-refreshes or other user actions from counting as impressions. When advertising rates are described as CPM or CPI, this is the amount paid for every thousand qualifying impressions served at cost.
Cost per impression is derived from advertising cost and the number of impressions.Cost per impression ($) = Advertising cost ($) / Number of Impressions (#)
Cost per impression is often expressed as Cost per Thousand Impressions (CPM) to make the numbers easier to manage.
When to use CPM Ads
Once you’ve finalized campaign goals and target audiences, it’s time to buy media or ad space on different websites.
Demand-Side Platform (DSP): This is an online environment that makes it easy for advertisers to purchase highly targeted display inventory across multiple websites, through one single interface. Similar to Google Add Words, DSPs allow the advertiser to set up ads, target specific audiences, report on results, and bid on inventory in real time.
The big difference is that DSPs are predominantly for display advertising (banners, skyscrapers, and other graphical ads), and that bidding is done on a CPM basis instead of the CPC model typically used for text ads.
If you’re a business with more than, let's say, $2 million in revenue, and advertising is an important part of your marketing mix, then you might consider working with an advertising agency. It might cost a little more, but the quality of work is superior to what you’d get if you did the work yourself. In the end, agency experts know a lot of little tips and techniques that you won’t know about, so the extra fees will probably pay for themselves in higher performance and improved ROI.
If you know that your target audience visits a certain website frequently, you might purchase inventory directly from the publisher. On the other hand, if your focus is on retargeting or on reaching the target audience regardless of the website they’re on, you should go with ad networks, DSPs, or an advertising agency.
When buying your ads, you’ll pay for them on a cost-per-click (CPC) or cost-per-thousand (CPM) basis.
Where to advertise?