CPR CPA CTR... what does it all mean? What it means is dollars "out" of your pocket instead of "in" to your pocket. Advertising dollars are gaining in value, meaning
regular advertiser now gets MORE for his dollar than he did a few years back.An advertiser used to pay for "impressions",meaning everytime his ad showed on a web page it was counted as an impression. He would buy 1000 to 100000 impressions for his ad. Ad rates depended upon
web site. Educational sites could get a higher CPM rate, (cost per thousand impressions), than a site selling laundry detergent.
Things have changed somewhat... Now they want to buy CPA ads, (cost per action), meaning they want to pay per "action". An "action" is not considered a click. If they place an ad on your site, it doesn't matter if it gets 10000 impressions or 50000 impressions. It doesn't matter if it gets 1000 clicks. They are ONLY going to pay you if someone actually clicks on
link AND buys whatever they are selling on their site. Sounds great huh?
The other great ad inventory they want to purchase is
CTR offer. This is for "click through rate". That means their ad can again show 10000 times or 50000 times. It doesn't matter. They are only going to pay you if someone actually clicks on their ad. Another yummy prospect huh?
What is going on here? Are we so desperate for ads that we will allow someone to use our web pages to flaunt their products for free and only get paid if someone clicks their ad or acually signs up for something they are selling? What is wrong with this picture, people?
Let's see.... I want to rent a new business building, but I have informed
landlord that even though I will be taking up their "prime space", I will only be paying partial rent on customers who actually buy something. It doesn't matter if I have a crummy storefront, a disorganized shelving system, or an unmanageble way to navigate about
store. I am still only going to pay them for their prime spot IF I actually get a sale out of
building. Now this sounds more to my liking!
Also, I am going to be contacting some National Newspapers. I want to place an ad on their "front" page along with some other ads in
rest of
newspaper. I am going to inform
newsletter that I don't care if they have 100,000 subscribers who will see
ad. I am only going to pay "IF" someone actually uses
ad and buys my product. Now hurry up and get my ad placed on
front page of your newspaper!
Let's wake up ladies!
As long as you keep accepting advertising on these terms, you are going to be giving away your "prime business space" and your "front page space" to some clever marketing agent who just saw a new victim when he landed at your site.
I would LOVE to see these guys try to pull this stuff in
real world! H-E-L-L-O... This may be a virtual world, but it still takes "real" people to read your ads and real people to buy your products.
Maybe you advertisers only want to pay on a click through rate or a click per action rate because your ad might stink or it's in a "testing" phase. In
meantime they get to be your guinea pig while you test around to see which ads got
best performance as you showed
ad millions of times but only had to pay for actual clicks on your ad. What a deal you got!