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Click-through rate (CTR) is the ratio of clicks on a specific link to the number of times a page, email, or advertisement is shown. It is commonly used to measure the success of an online advertising campaign for a particular website, as well as the effectiveness of email campaigns. [1] [2] Click-through rates for ad campaigns vary tremendously.
A hybrid Cost-per-Click (CPC) auction calculated by multiplying the CPC times the click-through rate (CTR), and multiplying that by one thousand. (Represented by: (CPC x CTR) x 1000 = eCPM.) This monetization model is used by Google to rank site-targeted CPM ads (in the Google content network) against keyword-targeted CPC ads (Google AdWords ...
Historically, the digital advertising business has relied on the easy to measure click-through rate (CTR) typically provided by the ad server. Most ad server platforms also measure unique or reach impressions based on deduplication of browser cookies. Click-through rates have been known to be on the decline since the advent of the display banner.
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.
Click-through is enabled at the moment of the "viewable impression". Viewable impressions were developed as an improvement of the online impression metrics measured by first ad servers developed in the mid-1990s, which analyze HTTP requests in a server log and cannot provide information on events fired by a viewer’s browser; thus, they cannot ...
Pay-per-click (PPC) has an advantage over cost-per-impression in that it conveys information about how effective the advertising was. Clicks are a way to measure attention and interest. If the main purpose of an ad is to generate a click, or more specifically drive traffic to a destination, then pay-per-click is the preferred metric.
An impression (in the context of online advertising) is when an ad is fetched from its source, and is countable. Whether the ad is clicked is not taken into account. [ 1 ] Each time an ad is fetched, it is counted as one impression.
The two most important metrics that matter to a web publisher looking to monetize their site is "Fill Rate", or the % of inventory where ads can be shown by a partner advertising network, and eCPM, which is the effective cost per thousand impression dollar amount that is paid out to the publisher for showing ads to their audience.