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In certain cases, YouTube will pay creators a percentage of the advertising revenue for advertisements that are placed within and before or after videos. The approximate share of advertising revenue paid to the creators of monetized videos is reported to be 55%; in 2013, the average creator's income was estimated to be $7.60 per thousand views. [2]
Cost per impression, along with pay-per-click (PPC) and cost per order, is used to assess the cost-effectiveness and profitability of online advertising. [1] Cost per impression is the closest online advertising strategy to those offered in other media such as television, radio or print, which sell advertising based on estimated viewership, listenership, or readership.
Pay-per-Sale Search Engine Marketing is a variant of pay-per-sale, whereby the traffic source is largely search engine traffic, such as that from Google's AdWords "pay-per-click" system. The business model means that merchants no longer bear the cost of " pay-per-click "; instead, the " pay-per-sale " provider takes on the risk of conversion.
In October 2006, Google paid $1.65 billion to purchase the 67-employee YouTube, seeking a lucrative marketing platform as both audiences and advertisers migrated from television to the Internet. [138] Google made the website more business-driven, [20] starting to overlay banner ads onto videos in August 2007. [47]
Cost-per-click (CPC) is calculated by dividing the advertising cost by the number of clicks generated by an advertisement. The basic formula is: Cost-per-click ($) = Advertising cost ($) / Ads clicked (#) There are two primary models for determining pay-per-click: flat-rate and bid-based.
A display ad can also be a companion ad for a non-clickable video ad. According to eMarketer , Facebook and Twitter were set to take 33 percent of display ad spending market share by 2017. [ 3 ] Desktop display advertising eclipsed search ad buying in 2014, with mobile ad spending overtaking display in 2015.
CPP is the cost of an advertising campaign, relative to the rating points delivered. In a manner similar to CPM, cost per point measures the cost per rating point for an advertising campaign by dividing the cost of the advertising by the rating points delivered. [4] The American Marketing Association defines cost-per-rating-point (CPR or CPRP) as:
Attack marketing was traditionally used by bootstrapped businesses looking for cheaper forms of advertising. As the marketing industry evolved, engaging consumers who had been bombarded with duplicated advertisements became difficult. The innovation of non-traditional marketing, such as attack marketing, gained greater popularity.