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CPC = Cost Per Click
There is a quiet revolution going on right now and even though the concept of CPC isn't new, its application is getting a lot of attention by many of the larger e-business media houses.
CPC means that you are selling advertising via a cost-per-click or cost-per-transaction basis rather than a CPM (Cost Per Thousand) basis.
CPM is not dead and will remain the primary ad cost method of choice by publishers because there are generally more advertisers than there are page views or list views to deliver. Why take the risk of only being paid on performance? I'd like you to think of CPC as an alternative to add to your ad revenue pile, not to replace your current method.
I recommend adding a CPC model to your existing offerings, thus utilizing additional inventory or additional space on your list or Web site in order to increase your revenue in spots where you might not be able to sell a CPM ad.
My Rant on the CPC Model:
When will advertisers learn that evaluating campaigns on a CTR (Click Through Rate) is one-dimensional and ignores the whole picture of what advertising can accomplish for them.
Some advertisers want prospects who CLICK. I just want customers who BUY. There needs to be a push to evaluating campaigns based on conversion (the ability to accomplish the real goals of the campaign) rather than to only achieve a high click-through rate.
What good is a high CTR if the campaign fails to achieve the original objectives?
Note: Branding campaigns are also a worthy accomplishment, but it all depends on what is important to you or your advertisers.
Now, if you are focused on conversion, then it doesn't matter if you buy on a CPC or CPM basis because the objective is to make sales or whatever the desired transaction is.
Bottom Line: When you are selling your list ad inventory, if you want to open up additional inventory that you did not have before, you might want to consider adding a CPC option to your offerings. Be sure to set your minimum CPC buy high enough to make it worth doing.
As an example, I've done a few CPC campaigns for clients, and each time it was a minimum of $1,000-$7,000 campaign which was enough to make it worth doing. Remember that you also have to deliver, and if you have limited inventory, you might not be able to deliver or you might not deliver on time.
You might consider adding CPC, utilizing your secondary or less-than- premium ad inventory as a means for additional income from your list(s). If CPC doesn't touch your fancy - you could try a hybrid mix of CPM and CPC to see how that works with your audience and advertisers. As always, keep testing for best results!
This Ezine-Tip was submitted By Christopher Knight -- Email List Marketing Expert, author and entrepreneur.
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Ezine-Tips for February 22, 2000
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