Compensation and performance of digital advertising
Three types of actors
- The advertiser wishes to make a marketing communication about his products or services.
- The publisher offers advertisers to use his websites as advertising media. He is the owner of the sites or his representative.
- The agency gets in between the advertiser and the publisher. It offers the advertiser and the publisher the management of marketing campaigns through cost negotiation, qualitative study of broadcast media, audience measurement or tracking and management of regulations.
Users are always forgotten in the remuneration. They are simply a target to be reached.
How is the remuneration calculated ?
CPC – Cost Per Click
CPC campaigns are paid by click on the displayed ad. They are very effective when they are highlighted, the case of leadpromo or transparent flash at the top of the page for example.
The average click rate is 0.5%, or 5 clicks for 1000 views.
There is a rare variant of CPC system, Cost Per Double Click or CPDC. The double-click corresponds to a click on the advertisement followed by a click on a link of the advertiser’s site. This system limits the cheat but is more expensive but one notes a loss of more than 30% compared to the CPC system because a large proportion of visitors leaves the advertiser’s site from the first page.
CPT – Cost Per Thousand
That is the cost for 1,000 views of an advertiser’s visual.
Advertisers who use CPT often request that their banners be visible without the need to scroller so that each display of the banner is seen by users. A capping (the maximum number of views for a user or global) is often specified on these campaigns so as not to show all displays to only a few Internet users.
The advantage for affiliates is that turnover is simple to determine. Usually, the cost of a CPT campaign is from 0.5 € / CPT on a format such as a banner and more than 1 € on a more visible / intrusive format such as popup, siteunder, supersticiel….
The eCPT represents the cost of a campaign on the CPC, CPL, CPA remuneration type, brought back to the CPT.
This indicator makes it possible to compare the profitability of the campaigns between them and thus to set up its adserver to display one campaign rather than another. Obviously the eCPT of a campaign will depend on the site, the target audience and the campaign in question.
CPL – Cost Per Lead
A CPL campaign is a paid campaign when users complete the form for which the remuneration is offered. It’s a performance campaign.
Form pay is widespread in the affiliate field as it increases the membership base of advertisers.
The problem with CPL campaigns is that the likelihood of a user clicking on a banner and then signing up on the advertiser’s site is low.
It is better to promote these campaigns by dedicating them a page of presentation in order to make users want to know more. The conversion rate can then increase to 5 to 10%.
CPA – Cost Per Action
A CPA campaign is a paid campaign when users perform an action, often a purchase. It’s also a performance campaign.
Advertisers remunerate sales by a fixed amount or variable on turnover. Targeted sales campaigns are effective and advertisers are fond of this type of compensation because they are winners every time.
CTR – Click Through Rate
CTR is the ratio of clicks to banner impressions. If one person in 100 clicks on the banner, the CTR is 1%.
CVR – Conversion Rate
The CVR represents the ratio between the completion of the expected action and the number of visitors. If a visitor to your site or landing page out of 100 buys your product, the CVR is 1%.
EPC – Earning Per Cent
The EPC represents the gain per 100 clicks of a banner. If 100 clicks earns 2 euros, the EPC is 0.02. Publishers have an interest in promoting the campaigns with the highest EPC.
The EPC is certainly the most important surveillance indicator. An upward or downward variation indicates a significant change in the advertiser’s campaign.
EPC is also a way to negotiate compensation with advertisers. What’s the point of running a campaign that does not earn ?
Cost savings and more commitment
In addition, brands are demanding more and more commitment from users and consumers. We offer a display network that reaches 100 million users on which you can broadcast your campaigns with targetting by categories, device, location; and a display overlay, native and video. We are the only ones to combine it with a social network where targets can interact with your campaigns and where influencers bring back more traffic. We save you time with our integrated platform or you can define your priorities: awareness, conversion, or mix of both and commitment.
A DSP – SSP display network combined with a social network
On the Display Network (DSP-SSP), bloggers and websites can monetize their content by displaying branded ads or other sites that are part of the network. They are all the more motivated that we give them 95% of your budget. In addition, 5% of the budget is returned to our members in the form of Rewards.
On the Social Shopping network, everyone posts their favorite links, or gives advice on what content they find useful. Users believe (53%) most of all written comments from customers, sources of trust. Members can post a link to monetize their premium content, for which they can request a freely defined price. Brands can also promote their offers at a lower cost, some of which will be donated to the most active members. You have a qualitative feedback on your campaigns and get more commitment.
Advertising spaces are mostly bought and sold through programmatic auctions as in the financial markets. Their goal is maximizing profit and selling “bottom of tank” space. The prices are therefore quite opaque with algorithms and intermediate multiples. Advertz does not use an RTB system: on the other hand, we offer different price options or advertisers are free to choose:
- A firm price by CPM, CPC or CPA
- A price range : Minimum and maximum price
- At least saying prices : Reverse Auction System
- Guaranteed return on investment : budget is returned if goals are not achieved
Advertize : three possibilities
- Remind (CPT) : For long-term campaigns. This solution is proposed to increase the reputation of your brand. It is perfect for branding.
- Inform (CPT/CPC) : For mid-term campaigns. You have an offer and you want to make it known. So, let your message be heard !
- Convert (CPC/CPA) : For short-term campaings. This is the reference method for generating actions (sales, form fills…). Boost your revenue !