CPC, CPM, CPA, CPT are traffic purchase models in ad networks. Each of them has unique features, understanding of which will help to avoid mistakes and save the budget on tests.
In this article, we’ll take a closer look at the mechanisms for buying clicks, impressions and leads, compare the interests of ad networks and publishers with the interests of advertisers.
1. СРС – clicks purchase model.
2. CPM – payment for impressions.
3. CPT – cost per time.
4. CPA – we pay to ad network for the actions made by site user.
Cost Per Click (CPC) is a system according to which you pay for each click on advertisement.
The advantage for the advertiser is that by clicking on the ad on the website, users are already interested in the offer, that is, you pay for the target audience. In this case, the quality of promo materials and targeting is not as important as with CPM (when we pay for impressions).
However, by improving the quality of your ad, and by setting exact targeting, you can increase your CTR.
СРС is best used when the person already understands what product you are advertising on the ad. In that way you will get interested people, not just “empty” clicks.
It should be understood that click does not always mean a user’s transition to the advertiser’s website. Here are some reasons for losing leads:
• it took a long time for the website to be loaded and the user did not want to wait,
• he/she left the page so fast that the system did not notice him/her.
• If we know which rate we pay for a click, we can calculate the budget to be needed for the test.
• You can estimate the effectiveness of one or another banner.
• Targeted traffic.
• High chance of click fraud
• Pay per click is higher than one for impressions.
• There is a minimum rate that we have to pay to get a click.
• You can attract more advertisers, because the budget for tests can be measured.
• You can collect more data on the audience and track CTR banners and coverage indicators.
• Rather low risk.
• High CTR of advertisements is needed.
• You cannot predict the exact number of people clicking on the ad.
Which model is better to buy traffic or place ad on your own website?
There is no clear answer. In order to attract relevant traffic and get the desired result in the end, you need to test different approaches, and analyze the obtained indicators. Each traffic purchase model has unique features that you can use to your advantage, if you take into account not only your interests, but also the interests of the advertising network, as well as the publishers who place your ads and banners on their sites.
Please contact our managers in order to choose the most suitable model for your business or your advertising space. Our CPC publisher network will provide you with close consultation and help you to customize your advertisement so that it really benefits you.