CPM, CPC, CPA, PFP, CPS, CPL, and CPR

An online media (website) contains dozens or even thousands of pages. The placement and price of online advertisements involve specific pages and the number of visitors. This is like the concept of "version Space", "distribution volume" of print media (such as newspapers), or "time period" and "rating" of radio media (such as television.

 

1. CPM (cost per mille, or cost per thousand; cost per impressions) costs per thousand persons

 

The most scientific way to charge for online advertising is to charge based on the number of people who see your ads. Billing by visits has become the practice of online advertising. CPM (person cost) refers to the advertising cost shared by each person who hears or sees an advertisement during the advertising process. Traditional media mostly adopt this billing method. For online advertising, cpm depends on the "impression" scale. It is generally understood as the number of times a person's eyes watch an advertisement within a fixed period of time. For example, if the unit price of an advertisement banner is 1 RMB/CPM, it means that if every one thousand people see this ban-ner, they will receive 1 RMB, and so on, the home page will be 10 RMB for 10,000 visits.

 

As to the charge per CPM, the price level should be divided based on the popularity of the home page (that is, the number of visitors), and a fixed rate should be adopted. In international practice, the cost per CPM ranges from $5 to $200.

 

2. CPC (cost per click; cost per thousand click-through) cost per click

 

Billing is based on each click. This method can be used to increase the difficulty of cheating with the limited click rate. It is also the best way to promote websites. However, there are a lot of websites that run advertisements in this way think it is unfair. For example, although the viewer did not click, but he has already seen the advertisement, for these traffic that saw the advertisement but did not click, the website is busy. Many websites are reluctant to make such advertisements because traditional media has never done so.

 

3. CPA (cost per action) per action cost

 

The CPA billing method is based on the actual advertising effect, that is, the billing is based on the responded effective questionnaire or order, but not limited to advertising. The CPA pricing method has certain risks for the website. However, if the advertisement is successfully delivered, the benefits will be much greater than the CPM billing method. In order to avoid the risk of advertising fees, advertisers only pay the site fees based on the number of clicks after they click a flag ad and link the ad webpage.

 

4. CPR (cost per response) per response cost

 

Billing is based on each response of the viewer. This advertisement billing fully reflects the characteristics of "prompt response, direct interaction, and accurate record" for online advertisements. However, this is obviously an advertisement model for secondary sales, for brand advertisement requirements that have been met by just half of the names listed, almost all websites will reject them, because the chance of getting advertising fees is even weaker than that of CPC.

 

5. cpp (cost per purchase) per purchase cost

 

In order to avoid the risk of advertising fees, advertisers only pay the advertising site fees based on the number of sales items after they click the flag advertisement and make online transactions.

 

Both CPA and CPP, advertisers require the target consumer to "click", or even form a further purchase, to pay: CPM requires only "witness" (or "impression") to generate advertising payment.

 

6. monthly subscription

 

Many websites in China charge fees based on the "How much is a month" billing method, which is unfair to customers and websites and cannot protect the interests of advertisers. Although the Internet advertising billing methods are CPM and CPC, the network advertisement Charging mode for a period of time has always been vague, and network advertisers have their own responsibilities. Some use CPM and CPC for billing, and some simply use monthly subscriptions, regardless of the effect, no matter how many visits, one price. Although many large sites currently use CPM and CPC for billing, many small and medium sites still use monthly subscriptions.

 

7. PFP (pay-for-performance) pay-as-you-go

 

According to a recent study by forrerster, a well-known market research firm, the World Wide Web will be charged from the current advertising billing model-impression-CPM (this is also the model used by most non-Online Media) change to pay-for-performance.

 

Although the company's researchers predict that there will be explosive growth in online advertising over the next five years, from $1999 in 2.8 billion to $2004 in 22 billion, however, the transformation of the business model means that profit will become the primary concern of online advertising publishers.

 

"A major feature of Internet advertising is that it is based on performance," said Neil, a senior analyst at forleicester. For publishers, it is impossible to make profits if they do not take any substantive purchase actions ." The performance-based pricing benchmark includes the number of clicks, sales performance, navigation, and so on. Either way, we can be certain that this billing model will be widely used, said glack, an analyst at Cupid.

 

Although the performance-based advertising model is widely welcomed, it does not mean that the CPM model is outdated. On the contrary, if the manufacturer insists on doing so, it will only suffer its own losses. A senior analyst pointed out that if sellers cannot handle the problem flexibly during negotiations and stick to the performance model, they will lose many opportunities for cooperation, because many websites do not accept this model currently.

 

8. Other billing methods

 

Some advertisers will propose the following methods for bargaining when conducting special marketing projects:

 

(1) CPL (cost per leads): charges are collected based on the number of potential customer lists;

 

(2) CPS (cost per sales): Convert the advertising amount by the actual number of products sold.

 

In short, online advertising has its own characteristics, but playing with some fancy terms cannot solve the actual problem. A website must possess the advertising value, which has a certain development history, after making a decision on the target market, you can select different content websites and evaluate their historical traffic. In this way, you can estimate the price of an advertisement within a certain period of time. On this basis, or, depending on the nature of the ad, you can take the CPC, CPR, CPA and other things as weighting.

 

In comparison, CPM and monthly subscription are advantageous for the website, while CPC, CPA, CPR, CPP, or PFP are advantageous for advertisers. The most popular pricing methods are CPM and CPC, and the most popular one is CPM.

Tags: PFP, CPA, CPS, cpm, CPC, CPL, CPP, CPR