CPC,PPC,CPM and CTR for digital advertising

CPC for digital advertising

First of all, we can say that CPC called Cost-Per-Click. We can say that CPC start works with displaying ads on a website for digital advertising. When a visitor comes to visit your website and clicks on one of those ads, your website generates revenue. CPC is the amount that a website publisher receives when a paid advertisement on the site is clicked. Shortly we can say that CPC is the amount you pay for a click on your ad.

When we are looking for details, CPC or cost per click has 2 components for digital advertising: Your bid and your actual price.
– CPC bid is the amount of money you are willing to pay if someone actually clicks on your ads,
– CPC actual price is the amount of money you are paying as a result of the ad auction.CPC is the amount that an advertiser pays for a click is usually set either by formula. The formula is the cost per impression (CPI) divided by percent click-through ratio (%CTR).

For an example,

I think you are getting 500-1000 views per day, your average click-through rate(CTR) might be 5 clicks per day.

Take it on mind we can say that  you are getting 5 clicks each day. So, you get 150 clicks every month.

Yes, your average CPC for ads served on your site is $0.20

 

PPC for digital advertising

On another hand, we can say that PPC is related with CPC. Actually, PPC is Pay Per Click, it is the term used to describe the type of digital advertising. Pay Per Click (PPC) mentions a type of digital advertising in which the advertiser pays for each click on one of their ads. PPC is a new advertising philosophy. As an example, a website that has a CPC rate of 10 cents and provides 1,000 click-throughs would bill $100 ($0.10 x 1000). CPC is just one part of PPC advertising, CPC is sometimes used to refer to PPC.

CPM for advertising

CPM comes with one of the several methods used to price website ads. The “M” in CPM represents the Roman numeral for 1,000 impressions. CPC is alternative of CPM. Actually, an advertisement’s success cannot be measured by CTR or CPC only because an ad that is viewed but not clicked on may still have an impact. Take it on your mind; you can say that if a website publisher charges $2.00 CPM for his ad, that means an advertiser must have to pay $2.00 for every 1,000 impressions of its ad.

CTR for advertising

CTR is called Click-through rate. To explain this, the ratio of the number of times the ad is clicked compared to the total number of ad impressions. For example, an advertisement that receives five clicks for every 100 impressions has a CTR of 5%.When you are getting 500-1000 views a day, your average click-through rate(CTR) might be 5 clicks per day.

 

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