CPC, CPM, and CTR: What's the Difference
CPC, CPM, and CTR indicators help to understand the reports of the advertising campaigns, as well as to plan the further configuration of advertising correctly.
CPC and CPM are pricing models and payment options of online advertising. CTR is a primary indicator of the advertising effectiveness on the Internet.
- CPC Cost Per Click
CPC is the amount that is paid per click on the ad made by a user. CPC shows how much, on average, each link click costs. CPC is a metric used in the online advertising industry for benchmarking ad efficiency and performance.
The price of a click depends on many factors. First of all, the ad itself, its quality and the CTR indicator. It is necessary to have the ad, which matches the user’s query in the search bar.
- CPM Cost Per Mille
CPM is a metric used by the online advertising industry to estimate the cost-effectiveness of an ad campaign. It's often used to compare performance among different ad publishers.
CPM measures the total amount spent on an ad campaign, divided by impressions, multiplied by 1000. If you paid $50 and got 10,000 impressions, your CPM was $5.
When choosing a payment method for impressions, take into account the activity of the audience. The more active users are, the more often the same ad is shown to them.
- CTR Click Through Rate
CTR is the percentage of times people saw your ad and performed a click. CTR is a ratio of users who viewed a link to users who clicked it. CTR reflects the interest of users in your articles. The more clicks a link has, the more interesting the content is for users. In addition to increased traffic, Google often encourages websites with a higher ranking.
Remember to check not only the general results but also carefully study and compare the consumer's gadgets (desktop, tablet or smartphone).
By doing so, marketers can get a valuable indicator that tells, which of the methods work best for potential buyers when using desktops, tablets or smartphones. Based on this, plan individual advertising activities or campaigns using several devices that fit your business goals.
If using a Short.cm shortening service, you don't need to set additional tool to view the statistics, use detailed Short.cm statistics.
How to make the most out of advertisement campaigns?
1. Choose a correct campaign goal.
You may want to get leads, conversions, purchases, registrations and so on.
If you set a Traffic goal, you will find people who are most likely to visit your site. If you set a Conversion goal, you will find those people, who will make an action that is considered a conversion (buy, register, add to cart).
2. Too broad or too narrow audience reach.
Choose audience coverage from 500K to 1M. It is an average amount of target audience, and it would be better not to go down or up that parameter.
3. Make the ad text, which answers users’ expectations.
Don’t cheat. If the title doesn’t match the content, users will never revisit your site. Add no more than 20% text to the ad image.
Shortening services are popping up these days. It is essential for internet users to click the trustworthy links. Customers should at once understand the link content. This is a psychological factor, which plays a crucial role. Seeing something cute, both you and I desire to touch it. This also happens with customers. When they look at a smart link, trust, assurance, and a nice URL make them click it. Therefore, the CTR of vanity links is 40% higher than of long URLs.
The article is about:
- Internet Advertising Models
- How to analyze advertising campaign.
- How to decrease cost of advertisement.