Continued from page 1
CPM ) Cost Per Thousand) This is an advertising model based on
cost of 1000 impressions of your ezine or web ads. If a publisher is selling advertising for $45 CPM, you would pay $45 for one thousand impressions of your advertisement, or .045 cents each per impression.
CTR (Click Through Ratio) The number of people who click through a link or banner compared to
number of people who view it. If 2 site visitors out of 100 click through a banner, you have a CTR of 2/100=.02 or 50:1 (or 2%).
Conversion Rate The percentage of visitors to your site who perform your Most Wanted Response -- subscribe, register, purchase, etc. If 10 out of 100 unique visitors perform your MWR, your conversion rate is 10/100 or 10%.
CPC (Cost Per Click) This is
cost of attracting a visitor to your web site. You calculate it using
following formula: CPC=CPM/(CTR x 1000)
If you paid $45 CPM for a banner ad with a CTR of 1%, your CPC would be $45 / (.01*1000) or $45/10 = $4.50 Each site visitor is costing you $4.50.
CPA (Cost Per Action) This is an online advertising model in which
advertiser's payment is based on
number of people who perform
Most Wanted Response (i.e. subscribe, register, purchase, etc.)
PPC (Pay Per Click) In this advertising model, payment is based on qualifying clickthroughs. The publisher delivers your advertising material to qualified viewers. You are charged for each one that clicks through
ad.
PPL (Pay Per Lead) In this advertising model, payment is based on qualifying leads supplied. For example, a publisher might pay you a set amount for each visitor you send who subsequently provides contact information or subscribes to an ezine.
PPS (Pay Per Sale) This is an advertising model in which you are paid a commission for each qualified sale that results from your activities.
Hybrid Model This is a combination of two or more marketing models. It might, for example, combine CPM and CPC models.
Got it all sorted out? Good. HAGD. (Have a Good Day!)

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