Glossary

AdTech industry is vast and ever-changing. It might be hard to keep up with all the new slang, but worry not - our glossary will keep you properly updated!

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Cost per Click

What is Cost per Click ?

A price the advertiser pays every time their banner/creative clicks on. It's the fee you pay when someone clicks on one of your pay-per-click (PPC) adverts on a website like Google AdWords or Bing. Many factors influence your CPC, such as your quality score, your maximum bid, and the ad rank of other advertisers bidding on the same keyword as you are. You must keep your cost per click as low as possible to avoid blowing through your advertising budget too rapidly and failing to get a return on your investment (ROI). Your sponsored search campaign's financial success and the cost of Google Ads will be determined in large part by your CPC (cost per click).

If you're spending too much or too little for each activity, your return on investment will depend on how much you pay for clicks and what kind of quality you get in return. Because the real ROI of your campaigns is decided by the amount you pay for clicks and the quality of traffic they bring in, it is critical to consider cost per click from both a cost and value perspective. You're looking for clicks that are both cheap and worthwhile, and you want to discover and target those. There are considerable variances in the cost of a click across industries, with the average being $2. In Google search results, the average cost per click is roughly $2.32, while the average cost per click on a publisher's display page is about $0.58.

Advertisers who achieve a high-Quality Score in Google Ads are given discounts. The ad's relevancy and the advertiser's content to the search keywords used determine this score. To automatically add display text and video advertising on their sites, website publishers sign up with Google AdSense and select from various sizes and formats. If you have a lot of traffic coming to your website, Google's algorithm decides which advertisements to promote on your page based on how much interest those advertisers have in your content.

The number of times people click on the ads determines how much the publisher gets paid. CPC is the cost per click for that particular ad. According to reports, Google pays its publishers 68% of their sites' revenue and retains 32%.Cost-per-click advertising is more highly valued and more expensive than CPM advertising because it signifies that an ad has gotten a prospective customer to take the first step towards taking action, whether to make a purchase or seek additional information.

Cost per Completed View - A price the advertiser pays every time their video is viewed completely. Advertising costs divided by the number of completed video views is the formula used to calculate Cost Per Completed View. Advertisers pay for each time a video is watched all the way through. Ad networks that use the CPCV model ensure that your ad has a possible impact on its users.Publishers charge for mobile video advertising using a variety of pricing strategies. It is surprising to see some companies still charging on a Cost-Per Mille (CPM) basis, which means that marketers pay a particular amount for every thousand impressions.

Video ads do not use images because only the ad was served, not whether it was visible or any part of it ran. CPV models, which charge marketers for each measurable "view," are more widespread. However, as previously stated, the term "perspective" is open to interpretation. According to CPV requirements, at least half of the video's pixels must be viewable on the screen for one second before the video would be considered acceptable. That's not even close to what a marketer needs to engage their audiences effectively. Ads are paid only if a user watches a video and subsequently does the desired action are cost-per-action (CPA) or cost-per-install (CPI) advertising. An app installation, landing page visit, or product purchase could all fall under this category. In terms of performance marketing, this concept works well. In terms of brand awareness, it doesn't. Publishers also dislike it because of the low conversion rates. A variation on the CPCV pricing scheme, Cost-Per-Second (CPS), charges advertisers for every second of time their ad is viewed. CPCV is a nice middle ground between CPC and CP since paying for one second or not at all is extreme.

Publishers and advertisers both benefit from it, but advertisers still lose out to CPCV because it ensures that customers only watch a portion of the video. Cost Per Completed View offers marketers the advantage of only paying for advertising that has impacted viewers rather than paying for every impression. For this reason, an increasing number of monetization platforms and ad networks are adding the cost per completed view model as part of their programmatic advertising solutions to entice more advertisers and give them higher-quality impressions for their campaigns.

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