About CPC,CPM and CTR

Discussion in 'Google AdWords' started by Hari Babu, Oct 23, 2008.

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  1. #1
    Hi All,

    I am new to Google Adwords and i want to know the meaning about Cost per click, Cost Per impression and Click through rate.

    Kindly Provide the detail how CTR= CPC/CPM and How it works


    Thanks,
    Hari Babu
    Website Promoter
     
    Hari Babu, Oct 23, 2008 IP
  2. cipals15

    cipals15 Well-Known Member

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    #2
    Clickthrough (CTR) - advertisement clicks per visit.
    Cost Per Impression (CPM) - advertising cost per visit.
    Cost Per Click (CPC) - cost per click on an advertisement.
     
    cipals15, Oct 23, 2008 IP
  3. xjessie007

    xjessie007 Peon

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    #3
    CTR Short for click-through rate, the ratio of the number of times a user clicks on an online advertisement per number of viewers who view the Web site that has the advertisement on it. For example, if one out of 100 people who visit a specific Web site click on an advertisement and are taken to the advertiser's site, then the CTR of that advertisement is 1/100, or 1%.

    CPM Abbreviated as CPM (the letter "M" in the abbreviation is the Roman numeral for one thousand). CPM is used by Internet marketers to price ad banners. Sites that sell advertising will guarantee an advertiser a certain number of impressions (number of times an ad banner is downloaded and presumably seen by visitors.), then set a rate based on that guarantee times the CPM rate. A Web site that has a CPM rate of $25 and guarantees advertisers 600,000 impressions will charge $15,000 ($25 x 600) for those advertisers' ad banner.
     
    xjessie007, Dec 6, 2008 IP
  4. McDonalds|Chicken|Selects

    McDonalds|Chicken|Selects Peon

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    #4
    Just a tip if you have never started a campaign before...always start out with CPC bidding first...I remember when I started my first campaign, I got burned bad using CPM ads with 0.24% CTR =X
     
    McDonalds|Chicken|Selects, Dec 7, 2008 IP
  5. PPC-Coach

    PPC-Coach Active Member

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    #5
    Do some serious research before starting my friend. These are basic terms covered in their own help pages in detail. Don't jump in until you've got a good handle on the terminology.
     
    PPC-Coach, Dec 8, 2008 IP
  6. robertpriolo

    robertpriolo Peon

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    #6
    robertpriolo, Dec 8, 2008 IP
  7. Steve allan

    Steve allan Guest

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    #7
    In an Internet marketing, online advertisements plays an very important role. There are many types of online advertisements like CPC, CPM, CPV, PPC and many more.

    CPC means Cost per Click, this is an extremely helpful technique used by the advertisers to market and promote their web site. CPC works for large business and as well as for small business.

    CPM means Cost per Thousand ad views and M stands for mille described from Latin word. CPM is one of the best online advertising program. CPM ad networks are the ideal way to monetize your site and blog.

    CTR means Click through Rate, it is the number of clicks an ad receives divided by the number of time the ad or ad unit or page is viewed. Therefore, higher the CTR, better the performance is.
     
    Steve allan, Dec 30, 2008 IP