Cpt,cpm,cps

Business-to-consumer website in the initial stage, once the personnel, website, procurement channels, warehousing logistics input basically in place, the website officially started operation, how to obtain sufficient passenger flow becomes the key factor of the website survival. The most direct means of gaining passenger flow is to advertise on various media.

Traditional media and internet-based advertising typically use CPT (paid by presentation time) or CPM (Pay-per-show) mode. The direct sales conversion rate of advertising is very low, and the lack of effective monitoring means. For consumer-to-consumer websites that need more than just eyeballs and sales, it is more risky to invest blindly than high-stakes advertising.

The CPC (Pay-per-click) mode of the search engine makes a substantial breakthrough in the monitoring of advertising effectiveness, and in some extent balances the interests and risks between the advertiser and the site. For a long time, CPC has become the main way for many small and medium-sized business network marketing promotion.

Some people have measured the current market-to-consumer conversion rate of the entire industry: mainstream-to-business web site in about 1%, generally only 0.1%, the average level in 0.5% (1000 people visit, 5 people buy). Under such a low conversion rate of the industry, business-to-consumer sites to obtain a new order customers cost very high: high-quality shopping search traffic of CPC cost at 1 yuan/click, according to the above 0.5% purchase conversion rate, to obtain 1 new orders customers need 200 clicks, cost 200 yuan. If the average amount of the order is 200 yuan/single, the ROI is only 1. If the average gross margin is 20%, the real ROI is only 0.2. Consumer-to-business is a loss before a new customer completes the fifth transaction, which is a very heavy burden for the fledgling website.

If the ad is paid and The advertiser's sales are directly linked, in other words, The Advertiser's revenue in accordance with the ad is split between the site of the display ad, which is the so-called CPS (cost per Sale, pay-per-sale) mode. Specific to the example of a guest, only the user to browse the page with a van ads, to where the customer site generated the purchase behavior, where customers will pay for advertising, otherwise the site will not receive revenue. It is obvious that the CPS model pushes the risk further to the end of the advertised site.