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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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