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Online Marketing Terms PDF
Online Marketing Terms PDF
you will need to lookup the number of ad impressions over a given period of time
you will also need to lookup the number of clicks on these ads over the same period of time
and finally you will need to know the CPC rate for the campaign
multiply the number of clicks by the CPC rate to come up with total revenue
divide the number of impressions by 1,000, giving you the number of blocks of 1,000 impressions delivered
divide the total revenue by the number of blocks of 1,000 impressions to come up with the eCPM value
a campaign with a CPC pricing was displayed 2 million times in a period of 1 day
in that same day, the ad server counted 5,000 clicks on the banners of the campaign
the CPC rate for the campaign was set to US$ 0.50
We can now calculate the eCPM of this campaign with a CPC rate:
In reality, you will probably never see nice round numbers like these, but if you use the formula explained above, it is simple to compute the
eCPM value of a CPC campaign for any given time frame.
Using Your Math Every Day: eCPM for a CPA
For campaigns with a CPA rate (cost per action, which could be a sale or signup for example), the formula is very similar:
You will need to lookup the number of ad impressions over a given period of time
you will also need to lookup the number of sales or leads (OpenX calls these ‘conversions’) over the same period of time
and finally you will need to know the CPA rate for the campaign
multiply the number of conversions by the CPA rate to come up with the total revenue
divide the number of impressions by 1,000, giving you the number of blocks of 1,000 impressions delivered
divide the total revenue by the number of blocks of 1,000 impressions to come up with the eCPM value
a campaign with CPA pricing was displayed 2 million times in a period of 1 day
in the same day, the ad server measured 100 sales related to the banners that were displayed and clicked
the CPA rate for the campaign was set to $ 30 per sale
We can now calculate the eCPM of this campaign with a CPA rate:
Like in our previous example, it is highly unlikely that there are nice round numbers like this, but the formula is always the same.
The Magic Formula
$1000 spent on $5 CPM Banner Buy on abc.com (1000M x $5).
It yields 200,000 impressions for the banner (200 x 1000M).
It yields a 3% CTR yields (3% of 200k=6000 clicks).
With 6000 clicks the offer gets 1% conversion ratio on a sale (60 sales).
Each sale has a CPA of $50.
The total revenue is $3000.
The EPC is $.50 ($3000 / 6000 clicks).
The ECPM is $15 ($3000 / 200M).
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Confidential Online Training 101
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Confidential Online Training 101
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Confidential Online Training 101
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Confidential Online Training 101
Text Ads
The simplest method of advertising is via a humble text ad. Copy is usually used to pre-sell a product or service and
then the reader is encouraged to find out more or buy via a text link. When the hyperlink is clicked on, the surfer is
sent to the advertiser’s website.
Text ads appear in results of many search engines and integrated into the content of many web pages. They are also
popular in newsletters and “spam” emails.
Many advertising networks display text ads that correspond to the keywords of an internet search or to the content of
the page on which the ad is shown. These ads are believed to have a greater chance of attracting a user, because
they tend to share a similar context as the user's search query. For example, a search query for "book" might return
an advert for an online bookstore.
Although text links used to be created mainly in HTML, some advertising networks have started generating them via
Javascript and other methods. This has been controversial and disliked by some webmasters. One of the reasons is
because Javascript-created text links can be altered by the advertiser without getting the permission of the site
owner. Furthermore, the links don’t display if Javascript is turned off in a user’s browser and other issues can occur.
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