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MT11 #18/77

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AdOptimization TipsCPC vs CPM vs CPA

Presentation by Ankit Aggarwal

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CPC --->

CPM --->

CPA --->

Cost Per Click

Cost PerAction

Cost Per 1,000 Imp.

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TheAbbreviations..

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CPCAds

Some CPC basics:

Cost Per ClickAlso known as pay-per-click

(PPC). In this model the

advertiser pays for each click

made on a banner impression.

Payment solely depends on thenumber of clicks

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CPCAdsFor example:

Total Ad Impressions : 200,000

T

otal Clicks : 1000Cost : $0.08 per click

Click through rate (CTR) : Total Impressions/Clicks

1000/200,000 = 0.5%

Cost to the advertiser : Cost * Total Clicks

$0.08 * 1000 = $80

Advertiser Effective CPM (or eCPM) : Cost to the Advertiser

(Total Impression/1000)

: 80/200 = $0.4

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WhatWe Follow

@

Compare

Google Ad Network

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CPC Optimization TipsAd Network GoogleAdsense

Advertisement placement on prominent locations

Banners in the left/right Panel (Skyscraper) and Top

banner in Header (Leaderboard) are often ignored

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Recommended PatternsFor News Sites:

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Recommended Patterns continued..For Blog Sites (Homepage):

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Recommended Patterns continued...For Blog Sites (Article page) :

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Do you know the flow ofVision on the Web page?

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F - Pattern

Heat Map

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Adsense Works best without borders.

Match ad background with pages.

http://www.bollywoodmusic.com /

Exceptions are there check google search page.

For dark themes , experiment using a contrast color scheme.http://holidays.net/halloween/

CPC Optimization TipsAd Network GoogleAdsense

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Colorsand Backgrounds

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Track user behaviour on site, Google Site Overlay Tool

can be used For frequently changing sections, try text/Image ads.

Watch Impressions vs CTR.

CPC Optimization TipsAd Network GoogleAdsense

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Best Performing Ads

ForText only Ads : 336 X 280

For othersituations : 300 X 250 (support Rich Media)

Others :

728

*90, 46

8* 60 , 234*60120* 600 , 160 * 600 ,120 * 240

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CPC Optimization Tips

Ad Network GoogleAdsense

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Use AB Split Testing

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CPC Example

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CPM ModelSome Basics for CPM:

Cost Per Mille. The price of 1000 banner impressions. Payment

depends on the number of impressions solely

Example

Total Banner Impressions : 200,000

CPM Rate :$0.5

Total Payment : 200,000 * 0.5 / 1000 = $100.

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Impressions

Clicks

CPC

CPM Optimization

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Do play around with frequency cap too

Do Analysis of your web page for

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CPM Optimization - Example

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CPM Example

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What is CPA?

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Cost PerAction(CPA)

Cost Per Lead(CPL)

Cost Per Sale(CPS)

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Cost PerAction > Cost Per Lead

Example

Total banner Impressions: 200,000 times

Total Clicks : 1000 times

Total Leads : 10

R

ate Per Lead : 5$ per lead

The total advertising cost would be 10*5 = 50$

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CPL Example

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Cost PerAction > Cost Per Sale

Example

Total banner Impressions: 200,000 times

Total Clicks : 1000 times

Total Sales : 10

Cost Per Product : $100

Commission Per Sale : 15%

The total advertising cost would be (15/100)*100*10 = 150$

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CPS Example

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Points to remember Find Best lead conversion placement

Always keep an eye on the impression and clicks

There are many other Cost Per Action models like:

Cost per Call (for cellular advertising) Cost perDownload

Cost per View (a common term for video based advertising)

Advertisers who claim to support all available model sometimes use

the term CPE cost per everything

Before signing up for an affiliate check the cancellation period.

WE HAVE TRIED FORLINKSHARE AND SHARE SALE

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