Digital Marketing #2 Display Advertising: Bidding & Models

cpc

amount advertisers pay each time a user clicks an ad. When your main goal is maximizing conversions. There is less risk because a certain level of engagement has been guaranteed for their money. Perfect for mid-funnel goals of driving traffic to your site or getting people to explore your product.

cpm

amount advertisers pay per 1,000 impressions. The main goal is to gain awareness through impressions. You are optimizing for reach, not sales right away. You accept that there is a risk you may not make as many conversions

cpa

amount advertisers pay only when a specific desired action is taken (like a sale, lead or download)

ecpm

A way for ad networks to compare all bids on the same scale by turning them into “how much money this advertiser would bring in for every 1,000 impressions.” Even if someone is paying per click, eCPM estimates what that would equal per 1,000 views. It uses the formula CPC × CTR × 1000. A higher eCPM means the network makes more money from that advertiser.

equivalent cpc

total cost/total clicks (If campaign A was CPM an campaign B was CPC, it helps you standardize your historical data)

equivalent cpa

total cost/total conversions (Lets you standardize the cost of a conversion no matter how you originally payed for the ad)

demographic targeting

targeting audiences by age, gender, and other traits

affinity audience

users grouped by lifestyle interests or long-term passions

in market audience

users actively researching a product; strong purchase intent

life events targeting

targets people experiencing milestones such as moving or getting married

combined audience

targets users who belong to multiple segments using AND logic

display ad copy

grabs attention, communicates value, and gives a clear CTA

landing page congruence

ensuring the landing page matches the ad’s messaging and design