Pricing Model

MMS Marketing
Batch 2022-2024
By Mohseen Shaikh
What is Pricing Model in Digital Marketing?
What is CPM (Cost Per Thousand
Impression)?
• Cost per thousand is a marketing term that refers to the cost an advertiser pays per 1,000
advertisement impressions
• An impression is a metric that counts the number of ad views or viewer engagements that an advertisement
receives

CPM Formula
What is CPC (Cost Per Click)
• CPC is a pricing model that charges the advertiser every time a user clicks on the
ad.
• Users are not expected to complete the conversion, purchase a product or sign up
for a newsletter. They simply have to click.

• CPC Formula
What is CPA (Cost Per Acquisition)
• When the user performs the action such as installation, click, or converting
to the lead. With the cost-per-lead pricing model, advertisers pay when a
user views an ad on the website, clicks that ad and then takes further action.

• CPC Formula
Relevance of Pricing Model in 3 Marketing
Funnel.

CPM

CPC

CPA
What is Click Fraud?
• Click fraud is when an individual, computer program or generated script
exploits online advertisers by repeatedly clicking on a PPC (pay-per-click)
advertisement to generate fraudulent charges.
Who Perpetuate Click Fraud?
• Competitor
• Publisher
• Customers
Type of Click Fraud
∙ Ad fraud.

∙ Click fraud bots.

∙ Click farms.

∙ Pixel stuffing.

∙ Ad stacking.

∙ Location fraud.

∙ Video viewing fraud.

∙ Competitor click abuse.

∙ Crowdsourcing.

∙ Incentivized traffic.
How can you identify click fraud?
• Signs that can indicate click fraud include the following:
• repeated clicks from the same internet service provider (ISP);
• high click-through rates with low Conversion rates; and
• a drop in page views while experiencing peaks in impressions.
How can you prevent click fraud?
∙ Monitor user behavior.
∙ Be aware of what competitors are doing.
∙ Use software programs that block fraud.
∙ Generate referral reports using software programs.
∙ Set different prices for ads on different websites.
Thank You
Any Question

Mohseen Shaikh
mohseen211115@gmail.com