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This approach is considered optimal for advertising high ticket items such as cars and household furniture. When this is the dominant approach to purchasing, advertising messages should be information-rich and media strategy should be weighted towards media such as magazines and newspapers capable of delivering long-copy advertising.
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 or PPS (sometimes referred to as cost-per-sale or CPS) is an online advertisement pricing system where the publisher or website owner is paid on the basis of the number of sales that are directly generated by an advertisement.
Cost per impression (also called cost per mille) is a marketing strategy put in place by various advertising networks, where an advert is placed on a relevant website, usually targeted to the content sector of that site. The advertiser then pays for every time the advert is displayed to a user.
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.
The low costs of electronic communication reduce the cost of displaying online advertisements compared to offline ads. Online advertising, and in particular social media, provides a low-cost means for advertisers to engage with large established communities. [65] Advertising online offers better returns than in other media. [76]: 1
Cost per order, also called cost per purchase, is the cost of internet advertising divided by the number of orders.Cost per order, along with cost per impression and cost per click, is the starting point for assessing the effectiveness of a company's internet advertising and can be used for comparison across advertising media and vehicles and as an indicator of the profitability of a firm's ...
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: