[Internet Open source knowledge]001. Online Advertising pricing Model

In terms of online advertising, often encountered in the CPA, CPC, CPM, CPO, PPC, PPL and other abbreviated letters, these are about the network advertising pricing method abbreviation phrase .

Command index:

• CPA
• CPC
• Cpl
• Cpm
• Cpo
• Cpp
• Ppc
• PPL
• Pps
• Cptm
• Cps
• Cpr
• PFP

A network media (website) will contain dozens of or even thousands of pages, the site for survival, generally need to put network ads on the site. The location and price of online advertising involves specific pages and the number of visitors. This is like the "position", "circulation" of print media (such as a newspaper), or the concept of "time" and "ratings" of radio-wave media such as television.

In short, the network advertising itself has its own characteristics, but playing with some fancy nouns can not solve the actual problem, a website to have advertising value, is a certain development history, then, in the target market decision after the selection of different content sites, and then to investigate its historical flow estimates, so, Can estimate the price of advertising in a certain period of time, on this basis, or according to different nature of advertising, CPC, CPR, CPA These things as a weighting, that's all.

In contrast, CPM and monthly subscription are beneficial to the website, while CPC, CPA, CPR, CPP or PFP are beneficial to advertisers. At present, the more popular pricing methods are CPM and CPC, the most popular is CPM.

CPA (Cost Per Action)

CPA (cost-per-action): Online Advertising pricing model terminology. That is, the cost of each action, that is, the pricing model based on the action taken by each visitor to the online ad. There is a special definition of user action, including the formation of a transaction, the acquisition of a registered user, or a click on a Web ad.

CPA Pricing method refers to the actual effect of advertising, that is, according to the response of a valid questionnaire or order to be billed, but not limited to the amount of advertising. The pricing method of CPA has some risks to the website, but if the advertisement is successful, its revenue is much bigger than the CPM pricing method. Advertisers to avoid the risk of advertising costs, only when the network users click on the banner ads, linked to the main page, the number of clicks paid to the advertising site.

CPC(cost Per Click)

CPC (Cost-per-click;cost per thousand Click-through): One of the online advertising pricing models. Represents the cost per click. Charges are based on the number of clicks on the ad. such as keyword ads generally adopt this pricing model.

This method plus click-through limit can enhance the difficulty of cheating, and is the best way to promote site site. However, this kind of method has a lot of business advertising site feel unfair, for example, although the browser did not click, but he has seen the ads, for these see ads but no click Traffic, the site became white busy. There are a lot of websites that are reluctant to do such advertisements, it is said, because the traditional media has never done so.

This is the way Google AdSense is currently used.

CPL(cost Per Leads)

CPL (Cost Per Leads): One of the online ad pricing models. To collect a list of potential customers, which is a common ad pattern that is paid for after a successful registration with a specific link. This is our usual name for the guided registration, such as "Asian Dating"

Cost-per-lead (CPL) or Cost-per-acquisition (CPA) Pay by the number of guides or: If a visitor enters the merchant website via the affiliate link, if a form is filled out and submitted, The management system generates a lead record that corresponds to the affiliate, and the merchant pays for the member by the number of boot records.

CPM(cost Per Impressions)

CPM(cost per thousand impressions or cost per impressions): One of the online ad pricing models. Represents the cost per thousand impressions. The cost of the ad bar is 1000 (impressions) per display. CPM is one of the most commonly used online advertising pricing models.

• The most scientific way to charge online advertising is to charge the number of people who see your ad. According to the number of visitors to the Internet advertising has become the Convention. CPM (thousand people cost) refers to the advertising process, the average number of people who hear or see an ad share the cost of advertising. The traditional medium uses this kind of valuation method more. In online advertising, CPM depends on the "impression" scale, usually understood as the number of times a person's eyes look at an ad over a fixed period of time. For example, an advertising banner unit price is 1 yuan/cpm words, means that every 1000 people see this banner words on the 1 yuan, so and so on, 10,000 visitors visit the homepage is 10 yuan.
• As for the fee per CPM, we have to take a fixed rate based on the popularity of the homepage (that is, the number of visitors) to divide the price level. International practice is to charge from $5 to $200 per CPM.

CPO (cost Per Order)

CPO (Cost-per-order): One of the online advertising pricing models. Also known as Cost-per-transaction, which is the way to charge per order/per transaction.

CPP(cost Per Purchase)

CPP (Cost Per Purchase): One of the online ad pricing models. Represents the cost per purchase

Advertisers to avoid the risk of advertising costs, only after the network users click on the banner ads and online transactions, the number of sales to pay advertising site costs. Whether it is CPA or CPP, advertisers require "click" of the target consumer, or even further form a purchase, only to pay: CPM only requires the occurrence of "sightings" (or "show", "impression"), resulting in advertising payments.

PPC(pay Per Click)

PPC(pay-per-click): A network AD pricing model that is billed based on the number of users who click on ads or email messages.

PPL(pay Per lead)

PPL(pay-per-lead): One of the online ad pricing models. That is, the pricing model that is charged based on the guide that is generated each time through online advertising. For example, advertisers pay advertisers for their online forms when they click an ad. This mode is often used in the network membership marketing model for the Alliance website established Commission model.

PPS(pay Per Sale)

PPS(pay-per-sale): A network AD pricing model that pays for the amount of direct sales generated by online advertising.

cptm (cost per targeted thousand impressions)

CPTM (Cost per targeted thousand impressions): One of the online ad pricing models. Represents the thousand impressions cost of a targeted user, such as demographic information. The difference between CPTM and CPM is that CPM is the number of impressions for all users, and CPTM is just the number of users who have been positioned.

CPS(cost Per Sales)

CPS (Cost Per Sales): One of the online advertising pricing models. Indicates the amount of the advertisement to be converted to the actual number of products sold. That is, according to each order/transaction to charge the way. A commission is available to the site owner for each successful transaction.

CPR(cost Per Response)

CPR (Cost Per Response): One of the online ad pricing models. Represents the cost per response, which is billed per response of the browser. This advertising billing fully embodies the network advertising "timely response, direct interaction, accurate record" characteristics, but this is obviously part of the advertising model of ancillary sales, for those who actually light the name is already half satisfied with the brand advertising requirements, probably all the site will be given a refusal, Because the opportunity to get advertising costs more than CPC.

PFP(pay for performance)

PFP (pay-for-performance): One of the online advertising pricing models. Payment is based on performance.

The World Wide Web will be--cpm from the current ad-charging model-that is, Forrest per thousand flashes (impression) (which is also the model used by most non-online media), according to a recent study published by Forrerster Research, a leading market research firm. Changes to a performance-based fee (pay-for-performance) mode.

Although the company's researchers predict that online advertising will explode in the next 5 years, from $2.8 billion in 1999 to $22 billion in 2004, the shift in business models means that profitability will be a top concern for online advertising publishers.

"One of the hallmarks of Internet advertising is that it is based on performance," said Neil Forrest, a senior analyst at the company. For publishers, it is not possible to make a profit if the browser does not take any substantial purchase action. "The performance-based pricing benchmark has clicks, sales performance, navigation and so on, regardless of which, it is certain that this pricing model will be widely adopted," said Gluck, a company analyst at Cupid.

While the performance-based advertising model is widely welcomed, it does not mean that the CPM model is obsolete. Conversely, if the manufacturer insists on doing so, the only thing that will be lost is its own. A senior analyst has pointed out that if the business is not flexible in the negotiations, and adhere to the performance model, it will lose a lot of cooperation opportunities, because many sites do not accept this model.

Reference Sources

• Internet Open Source Knowledge

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[Internet Open source knowledge]001. Online Advertising pricing Model