– 1st Part –
We all know that this decision is one of the most difficult to make at the beginning of the advertising process… So, which option to choose? We will go through both models in the next 3 articles and explain a bit from scratch so it will be easier for you to get all further information.
What is CPC ?
CPC stands for
Cost
Per
Click meaning that you pay for each click on your ad/banner. In this model, you need to
think about targeted clicks. It is known to provide
less stress and requires
less management as you will only pay for a potential conversion (a click).
How CPC works ?
A CPC bidding model takes
two variables into consideration to give you your page view position, these are your
bid and your
CTR. After a determined period, your banner will have an
eCPM that will give your impression position. The better your eCPM, the higher your position is. The
formula for eCPM calculation is:
(Ad Spend x 1000) / Ad impressions
How CPC works inside Traffic Factory?
Using our platform, your banner will be
casted at positions 19 and 20 for a while.
After a sufficient amount of impressions, it calculates your first eCPM. Then a
new eCPM is calculated every “X” impressions. It might help to set a higher bid during the casting period to boost your eCPM.
CPC Strengths & Weaknesses?
CPC works as a
long-term model. It takes a while to calculate the right page view position since banners need to be casted to generate their eCPM. Your
budget is under control as long as you
pay attention to your CTR! Your
creatives and campaigns must be very precise and targeted and they have to fit your audience to give you the best potential of conversion.
CPC tips
- Do not use strong CTR banners for CPC campaigns.
- CPC is more adapted for Ad spots like footer and horizontal.
- Avoid miss-clicks so you won’t miss your target.
to be continued…
GLOSSARY
RTB: Real Time Bidding.
CPC: Cost Per Click.
CPM: Cost per thousand impressions or technically Cost Per Mille.
eCPM: Effective Cost Per Mille. (Ad Spend x 1000) / Ad impressions
CTR: Click-through rate (CTR) is the number of clicks per one hundred impressions.
