Quite some time ago, I have posted a definitions article for beginners, which includes definition for basic MMO activities. Overtime, as my reader gradually get mature in the business, I saw them gain more and more interest in PPC and promoting business. So here it is, definitions for PPC and promoting.
First, PPCs are
Programs pay you on the basis of the number of clicks you earn through your ads. They are only concerned about the clicks and the number of times you show the ads doesn't matter. Also, any purchases or Actions generating through those ads will not be counted to you. Instead, the one who bought you to display the ads will have the larger piece of the pie. So PPC is good for people who have to refer some customers to another people who have goods to sell. This "man-in-the-middle" is called an Advertiser and you are a Publisher
CPC : Cost per Click
A term to indicate how much money will you get for
1) Show the ad
2) Have to user click on it
Here's the formula: How much money you earn = clicks x CPC. More clicks, more money.
Advertiser
A bit expensive for Advertisers compared to Pay Per impression but its more reliable as they are paying only for clicks generated.
Publisher
CPC ads pay more per click than other advertising methods. However, publishers have to take extra care that their ads work well with their campaign. The Advertiser's Ads may harm you promoting website(s). Else, it will turn out to be a loss for them. However, When targetted properly, PPC/CPC ads are the best form of advertising which is profitable for both advertisers and publishers.
Basically, when you sign up for any PPC or promoting, you will see two options whether to become an publisher or an advertiser.
The most popular form of ad for PPC is banner
What is a web banner?
A web banner can be a single image (.gif, .jpg, etc.), a flash movie or a composite of different elements such as graphics, flash and or HTML code.
What is a banner impression?
Banner impression measures the number of times the banner is displayed, either on a web page or in a separate browser window as a pop-up or pop-under advertisement. Thus, 1000 impressions mean that the banner has been displayed 1000 times.
What is CPM?
Cost Per thousand iMpressions is an effective method of pricing web banner ads. It is the cost for displaying a banner 1000 times. Thus, if a banner ad space has a CPM of $10, it means that the cost of displaying a banner space one thousand times on that space is $10. Advertising program that uses this method almost only count traffic from the western world. This is the root for PPM
Pay per impression programs pay you on the basis of the number of ads you show rather than any other criteria required from the users side, like clicks, signups etx. Pay per impression are the safest mode of advertisement. Which is :-
1. Cheaper for the Advertiser (since the rates are low but are less reliable)
2. Quite reliable for Publisher but low paying. Publishers dont have to worry about clicks or signups.
What is CTR?
Click Through Ratio determines the effectiveness of a banner ad in terms of click-thrus. It is a ratio of the number of times the banner was clicked on by the viewer and the number of times the banner was displayed. Thus, if a banner has been displayed 1000 times and has been clicked 50 times, its CTR is 50:1000 or 1:20. Changing this CTR into a percentage value yields 5% (1/20 * 100); thus, 5% of the impressions have lead to clicks on the banner.
Coining CPM and CPC together, the term eCPM was born, it indicates how much clicks you generated per thousand impression. e stands for "effective", how many percent of your traffic is "effective" for PPC.
PPC and PPM can be considered a "bridge" between real advertising services and the basic MMO counterparts (PTP). Just to see how much life has been getting complicated ;)
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Friday 7 December 2007
Definitions for PPC businesses
Quite some time ago, I have posted a definitions article for beginners, which includes definition for basic MMO activities. Overtime, as my reader gradually get mature in the business, I saw them gain more and more interest in PPC and promoting business. So here it is, definitions for PPC and promoting.
First, PPCs are
Programs pay you on the basis of the number of clicks you earn through your ads. They are only concerned about the clicks and the number of times you show the ads doesn't matter. Also, any purchases or Actions generating through those ads will not be counted to you. Instead, the one who bought you to display the ads will have the larger piece of the pie. So PPC is good for people who have to refer some customers to another people who have goods to sell. This "man-in-the-middle" is called an Advertiser and you are a Publisher
CPC : Cost per Click
A term to indicate how much money will you get for
1) Show the ad
2) Have to user click on it
Here's the formula: How much money you earn = clicks x CPC. More clicks, more money.
Advertiser
A bit expensive for Advertisers compared to Pay Per impression but its more reliable as they are paying only for clicks generated.
Publisher
CPC ads pay more per click than other advertising methods. However, publishers have to take extra care that their ads work well with their campaign. The Advertiser's Ads may harm you promoting website(s). Else, it will turn out to be a loss for them. However, When targetted properly, PPC/CPC ads are the best form of advertising which is profitable for both advertisers and publishers.
Basically, when you sign up for any PPC or promoting, you will see two options whether to become an publisher or an advertiser.
The most popular form of ad for PPC is banner
What is a web banner?
A web banner can be a single image (.gif, .jpg, etc.), a flash movie or a composite of different elements such as graphics, flash and or HTML code.
What is a banner impression?
Banner impression measures the number of times the banner is displayed, either on a web page or in a separate browser window as a pop-up or pop-under advertisement. Thus, 1000 impressions mean that the banner has been displayed 1000 times.
What is CPM?
Cost Per thousand iMpressions is an effective method of pricing web banner ads. It is the cost for displaying a banner 1000 times. Thus, if a banner ad space has a CPM of $10, it means that the cost of displaying a banner space one thousand times on that space is $10. Advertising program that uses this method almost only count traffic from the western world. This is the root for PPM
Pay per impression programs pay you on the basis of the number of ads you show rather than any other criteria required from the users side, like clicks, signups etx. Pay per impression are the safest mode of advertisement. Which is :-
1. Cheaper for the Advertiser (since the rates are low but are less reliable)
2. Quite reliable for Publisher but low paying. Publishers dont have to worry about clicks or signups.
What is CTR?
Click Through Ratio determines the effectiveness of a banner ad in terms of click-thrus. It is a ratio of the number of times the banner was clicked on by the viewer and the number of times the banner was displayed. Thus, if a banner has been displayed 1000 times and has been clicked 50 times, its CTR is 50:1000 or 1:20. Changing this CTR into a percentage value yields 5% (1/20 * 100); thus, 5% of the impressions have lead to clicks on the banner.
Coining CPM and CPC together, the term eCPM was born, it indicates how much clicks you generated per thousand impression. e stands for "effective", how many percent of your traffic is "effective" for PPC.
PPC and PPM can be considered a "bridge" between real advertising services and the basic MMO counterparts (PTP). Just to see how much life has been getting complicated ;)
First, PPCs are
Programs pay you on the basis of the number of clicks you earn through your ads. They are only concerned about the clicks and the number of times you show the ads doesn't matter. Also, any purchases or Actions generating through those ads will not be counted to you. Instead, the one who bought you to display the ads will have the larger piece of the pie. So PPC is good for people who have to refer some customers to another people who have goods to sell. This "man-in-the-middle" is called an Advertiser and you are a Publisher
CPC : Cost per Click
A term to indicate how much money will you get for
1) Show the ad
2) Have to user click on it
Here's the formula: How much money you earn = clicks x CPC. More clicks, more money.
Advertiser
A bit expensive for Advertisers compared to Pay Per impression but its more reliable as they are paying only for clicks generated.
Publisher
CPC ads pay more per click than other advertising methods. However, publishers have to take extra care that their ads work well with their campaign. The Advertiser's Ads may harm you promoting website(s). Else, it will turn out to be a loss for them. However, When targetted properly, PPC/CPC ads are the best form of advertising which is profitable for both advertisers and publishers.
Basically, when you sign up for any PPC or promoting, you will see two options whether to become an publisher or an advertiser.
The most popular form of ad for PPC is banner
What is a web banner?
A web banner can be a single image (.gif, .jpg, etc.), a flash movie or a composite of different elements such as graphics, flash and or HTML code.
What is a banner impression?
Banner impression measures the number of times the banner is displayed, either on a web page or in a separate browser window as a pop-up or pop-under advertisement. Thus, 1000 impressions mean that the banner has been displayed 1000 times.
What is CPM?
Cost Per thousand iMpressions is an effective method of pricing web banner ads. It is the cost for displaying a banner 1000 times. Thus, if a banner ad space has a CPM of $10, it means that the cost of displaying a banner space one thousand times on that space is $10. Advertising program that uses this method almost only count traffic from the western world. This is the root for PPM
Pay per impression programs pay you on the basis of the number of ads you show rather than any other criteria required from the users side, like clicks, signups etx. Pay per impression are the safest mode of advertisement. Which is :-
1. Cheaper for the Advertiser (since the rates are low but are less reliable)
2. Quite reliable for Publisher but low paying. Publishers dont have to worry about clicks or signups.
What is CTR?
Click Through Ratio determines the effectiveness of a banner ad in terms of click-thrus. It is a ratio of the number of times the banner was clicked on by the viewer and the number of times the banner was displayed. Thus, if a banner has been displayed 1000 times and has been clicked 50 times, its CTR is 50:1000 or 1:20. Changing this CTR into a percentage value yields 5% (1/20 * 100); thus, 5% of the impressions have lead to clicks on the banner.
Coining CPM and CPC together, the term eCPM was born, it indicates how much clicks you generated per thousand impression. e stands for "effective", how many percent of your traffic is "effective" for PPC.
PPC and PPM can be considered a "bridge" between real advertising services and the basic MMO counterparts (PTP). Just to see how much life has been getting complicated ;)
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