Let’s start with some vocabulary. There are several payment models for online advertising. The most common are:
- CPC or cost per click: every time someone clicks on an advertisement that redirects to the advertiser's site, the later pays and the publisher (the website that displays advertisements) receives a fraction of this amount.
- CPM or cost per mille: in this model, the advertiser pays every time his add is displayed 1000 times. (Advertising Specialists use the word impressions) and the publisher receives a fraction of that amount.
Online advertisement vendors are usually specialized in one of the two pricing systems like Google's advertising programs with CPC, and the question of choice does not arise.
One Planet Only offers the two forms of payment, thus more flexibility for your campaigns. So, how to choose the most suitable model for your campaign?
Well it all depends on your activity or on the purpose of your campaign:
- If your goal is to sell online, and want to pay for prospects who have shown interest in your add or product, you must choose CPC.
- However, if your campaign is primarily intended to develop awareness of your brand or business, CPM, is more suited to your advertising purpose.
There is also a pure financial aspect. To explain it, we must consider another concept that is used to measure the effectiveness of your advertising campaign. This is the CTR or click through rate. It is expressed as a percentage of clicks over impressions. If your banner is clicked 10 times for each thousand impressions, CTR is 1%. Usually, CTR varies between 0.05 and 0.5% for conventional banners.
Of course, your performance and average CTR depend on several factors like the size and design of your ad, the location on the advertiser's site, the attractiveness of your brand or product and a precise targeting of your audience. One Planet Only let you monitor each of your banners CTR permanently and precisely. With a little practice, you will learn to know very precisely your campaign performance. Then depending on the CPC and CPM price, you will be in a position to choose the most cost effective solution for your next campaign.