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CPA CTR PPC CPM and what it all means

By | October 23, 2013

CPA, CTR, PPC, CPM are just some of the metrics that people see on a regular basis when acquiring traffic. Being able to correctly optimize and strategize your campaigns can make or break the success of your Private Label dating site. I could spend all day talking about ways to improve your ads but today I will explain what each of these acronyms mean and how to leverage them for greater success.

PPC Pay Per Click
This is a advertising model where advertisers pay the publisher for each click that their ad generates. If you get 10 clicks for 10 cents each, you have paid $1.00. If you traffic has a great conversion rate from click to profile this is a great method of advertising. If you get lots of clicks but very few profiles, you either need to adjust your ad or change to a different model.

CPM Cost per thousand
This is almost the opposite of PPC. This model charges customers an amount for every thousand impressions regardless of how many or how little clicks your ad gets. This can be a very effective model to use if your ad gets alot of clicks. It correlates pretty closely to the next factor which is CTR.

CTR Click through rate
This is a basic formula of the amount of clicks vs impressions of the ad. If you have 10 clicks out of 100 impressions your CTR is 10%. In almost all instances a high CTR means you have an eye catching ad that people are interested in. If you CTR is high but your conversion rate is low, you should evaluate the traffic source you are using or see if your ad doesn’t represent the content that the visitor sees once they get to your landing page

CPA Cost per acquisition (or cost per conversion)
This is a factor that our own teams focus on greatly. While having a great CTR can be good, you should care how many people are signing up for your Private Label dating site and not how many people just click on your ads. If 100 people click on your ad for $0.10 per click and you get 2 profiles, you CPA would be $5.00. Most CPA networks provide a conversion code which can help track your CPA accurately when someone signs up.

There are also many other metrics that each networks uses. If you need help understanding how to capitalize on what each network offers please contact your partner manager.

Aside from these 4 metrics, which have you seen that you feel are important?


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