Everything you need to know about the CPC payment model in mobile advertising:

Click-ads(CPC or CPC bidding)

Every business needs some sort of presence in cyberspace, from large and small companies to product or service providers, businesses active in wider markets or businesses with a cozy and focused market. But all they want is the same: accessing the largest number of contacts using the least resources and ultimately earning the most benefit.

There is a very cost effective way to realize all these goals at once: online advertising or internet marketing. When it comes to online advertising, and especially mobile advertising, there are numerous options available to advertisers and publishers such as advertisements that the lack of adequate knowledge about them can make decisions difficult and negatively affect the results of advertising campaigns. That’s why it’s best to get acquainted with various models of mobile advertising and internet advertising ahead of time.

تبلیغات کلیکی| تبلیغات CPC

Learn more about CPC advertising or click advertising

The term “cost per click,” which its advertising campaigns are known as clickable ads, translates the cost-per-click statement in English, also called the CPC. Pay Per Click (PPC) is also another name for this model, the literal translation of which is “Pay Per Click.” However, all of these names refer to one thing, and it’s a costing model of advertising.

Click advertising is the most well-known form of online advertising that has been used for many years, and is now used by advertisers for a variety of purposes, including traffic guidance or customer satisfaction. In this digital marketing (digital advertising)، model, the advertiser pays a specific amount for each time they click on their advert. In other words, the CPC model can be defined as a way to buy hits for a virtual page (as opposed to attracting an organic audience).

The easiest benefit of a click advertising is that the advertiser and publisher know exactly how many clicks are made on each ad, and with more precise tracking, it’s also possible to figure out how many of these clicks are sold or any other action.

The price / tariff for click advertising is different depending on the industry and other factors such as the value of the keyword or the size of the advertising campaign. However, the important thing about this type of advertising is that the price per click should be proportionate to the value it provides for businesses.

The history of the click advertising model

In 1996, the first known CPC advertisement document was used on an online directory called Planet Oasis. The directory was a desktop application featuring links to news and business websites developed by the Ark Package Bell NEC, Ark Interface II. The company’s initial reaction to the “pay-per-click” model was dubious. However, by the end of 1997, more than 400 brands were paying $ 0.005 to $ 0.25 for each click, in addition to placing an ad on the site.

In February 1998, Jeffrey Brouwer from the Goto.com website (which was at the time a computer startup of 25 and later on Overture as part of Yahoo) continued at the TED conference in California, a prototype of a A search engine with the ability to implement a click advertising model. This presentation and subsequent events led to the formation of the CPC system. In general, the validity of the pay-per-click payment model is generally attributed to Idealab’s founder and Bill Gross, the founder of Idealab and Goto.com.

Google started advertising search engines in December 1999, but the Google Adwords Advertising System started up in 2000. This system allowed advertisers to create text ads for the Google search engine. At that time, advertisers paid their advertising costs in terms of paid-per-view payment models (CPMs), until the CPC model was introduced in 2002. Overture claims that Google has violated the laws governing the registration of its advertising tools and sued the company for allegedly violating its patents.

As stated above, Goto.com launched the PPC advertising model since 1998, but later in November 2001 under the umbrella of Overture under Yahoo’s support umbrella; before that, the main source of Yahoo’s search engine advertising was banner advertising. In July 2003, Yahoo finally announced plans to buy Overture for $ 1.63 billion.

Definition and formula of the CPC advertising model

The “cost per click” model is a measure to calculate the cost that advertisers pay for each click on their ad. Since the prices of a CPC campaign may change due to traffic volumes, number of competitors, etc. during the run, the final cost of a CPC campaign is calculated by dividing the total cost by the total number of clicks.

There are two different ways to calculate cost per click: one is to set a fixed rate per click, and another to bid on a bid or bid basis. In both cases, the advertiser must take into account the potential value of each click. The value will depend on the advertiser’s expected visit and the short and long-term revenue generated by this visit (usually revenue).

Like other types of ads, CPC ads also target the first one. The interests of the target audience, its intention, geographic location and day and time are among the factors that are commonly involved in CPC campaigns.

تبلیغات کلیکی | تبلیغات CPC

Fixed cost CPC ads

In the fixed rate model, the advertiser and the advertiser agree on a specific amount per click. In most cases, advertisers have a pricelist that offers clicks on prices in different parts of the media or their advertising network based on it. Price differences will also depend on the content of the pages and, as a result, on the quality of their visitors, as the content above will attract more valuable visitors, the CPC or its cost per click will also be higher. On the other hand, the more the content of the show’s media is more valuable and more categorized, as a result of a more professional audience, the advertiser’s hand will also be easier to target the ad to a specific audience and the results of the advertising campaign will be better.

تبلیغات کلیکی| تبلیغات CPC
تبلیغات کلیکی| تبلیغات CPC

Bid advertising (based on bid or bid)

In this click advertising model, a contract signed by the advertiser allows the advertiser to create an advertisement for the advertiser through a domestic auction through an advertiser or advertiser. The way that this auction works is that each advertiser (usually by keyword) sends the advertiser the most that he is willing to pay per click at a certain location. As a result, each time the viewer is placed against a promotional site, the auction will be automatically activated and the winning ad be displayed to him.

For example, if the promotional site is part of a search engine results page (such as Google Adwords Ads), automatic bidding is performed every time a keyword is searched for, for business keywords, for each keyword. Then all the suggested prices, which are based on the user’s location, day and time of the search, and other targeted items, are compared with each other and the winning bidder is identified. In the case of a plurality of promotional sites (which are commonplace in the case of search engines), the auctions may have multiple winners. Factors such as suggested price and quality score of advertisements can determine the position of advertised ads among other advertisements.

Read more about this here: everything you need to know about Google AdWords ads

Use of click advertising

The “cost per click” model is more commonly used in search engine advertising, such as google adwords ads. Advertisers of these jiggers usually bid on the keywords or keywords of their target market. In addition to media banner ads, some social networks like Facebook and Twitter also offer cost per click advertising as one of the advertising options available to their audience.

In general, this model is used both in the web and in the mobile marketing world. In mobile advertising, the advertiser is also a debtor and creditor in return for each click. Advertisers may prefer a cost-per-click model to the visitor because they pay for a practical action. On the other hand, the viewer may prefer a more profitable or more reliable model for revenue generation.

Advertising revenue can vary for advertisers who have a promotional position depending on the quality of the ad targeting. As a result, often advertisers and advertisers use a combination of CPC and CPM advertising models or other revenue models to optimize their advertising volume and costs.

Additionally, the CPC advertising model may be more of a propaganda for advertisers who seek to attract wider participation in the funnel and smaller conversions instead of targeting the bottoms of the sales hopper and encouraging the final transformation.

تبلیغات کلیکی| تبلیغات CPC

What is the CPC advertising goal?

The cost-per-click model along with cost-per-visit models (CPM) and cost-per-action (CPA) models are used to evaluate the effectiveness and profitability of online marketing. The advantage of the CPM model is that it has a clear indication of the effectiveness of these ads. In fact, by checking the number of clicks, the amount of attention or interest of the user to the advertisement can be evaluated to some extent. In fact, if the main purpose of an ad is to click on, or more precisely, to direct traffic to a specific destination, then the click advertising model is best suited for it.

Weaknesses of the Advertising Campaign:

  • In CPC ads, Google AdWords deals with traffic between several advertisers. As a result, the cost of this advertising model is sometimes higher and will not be affordable for smaller actors.
  • On the other hand, traffic may not be absorbed.
  • Clicks that are sent to the advertiser will not necessarily lead to conversion. The reason for this is the weakness of the landing page to convince the visitor or even accidental clicks. However, the mere fact that clicking a customer does not mean that it will not be in the future.
  • Clip ads can be a bit complicated and you need to be careful about what you are doing to get a score.

The strengths of the click advertising campaign:

  • Tracking clicks is extremely straightforward; users either click on an ad or not.
  • The advertiser pays only for clicks on the ad, meaning that the views are free.
  • Excessive and costly risk of advertising is reduced because it is only paid for traffic that is actually directed towards the advertiser’s site.
  • In most cases, you can instantly change the cost of a click or budget for an ad campaign as needed.
  • Well-designed and optimized CPC campaigns can drive significant traffic to the advertiser.
  • CPC ads can be more cost effective than those of the CPM for those who follow their return on investment (ROI).

What steps should we take to improve the effectiveness of a click advertising campaign?

Many advertisers may think that they will receive a large number of click-throughs with click advertising, and sales will begin immediately. But in reality, the situation is more complicated. Without a clever and proactive strategy, your mobile advertising campaign may cost you more than just profit. To get the most out of your CPC mobile advertising campaign, you need to think carefully about the unique audience requirements, limitations, and opportunities for mobile advertising.

Here are some tips for creating more effective mobile advertising campaigns that can be more appealing to users and a higher clickthrough rate (CTR).

AB testing

A/B test

Some advertisers try out hundreds of text, image, targeting and suggestion models to find the best combination for their mobile ads to find the best combination. The other name is A / B Testing, where several versions of the original model are tested. Even the most minor changes, such as the size of the logo, the font, color, and the tagline, can also make great changes.

بازگشت سرمایه‌گذاری (ROI)

Determine the cost of the ceiling and the optimal return on investment (ROI)

The ideal cost per click is determined by the optimal ROI you set. For most businesses, the ratio of 5 to 1 revenue is considered acceptable. This means that for every dollar spent on advertising, $ 5 dollars should be earned. It’s normal to set cost caps for CPC campaigns also to prevent resource waste.

بهبود کیفیت لندینگ پیج

Improving the quality of the landing page

Regardless of the selected advertising network, any online advertising campaigns need to have a high conversion rate landing page or landing page to work properly and get the best possible results. No advertisers like to leave visitors after clicking the ad and navigating to the landing page without any specific action. The advertiser wants to do something when the contact reaches the landing page. For this reason, there must be a fascinating and persuasive landing page to convince the audience to take the next step and take action. To accomplish this, several basic factors are needed:

  • Transparent call:

Call, Action, or Call To Action is the key to persuading the user to take action. What makes your call awesome is the combination of “value” and “communication.” Your call on one side should be relevant to the audience and on the other hand, be relevant to the website and landing page.

  • Charming suggestion:

The offer is for all that is said to give you the opportunity to act in return for the engagement of the audience. This offer can be instant discount, discount coupons, free trial use for a limited time, a ready-made form or even a downloadable brochure.

For example, a free brochure and a chance to engage in a lottery for those who record their contact information can be attractive and encourage them to record information.

  • Focus:

The more options people make, the more difficult they will be to decide, and they will need more time to conclude. So, make decisions simpler by narrowing your focus range. Keep your pageing page simple and focus on just one thing on each page.

For example, if you are a foreign language school, you will have a separate landing page for your private classes that focus on one thing only: that allows the contact to be contacted to register for a private class.

  • Refer to the most important features:

The audience of your landing pages must be convinced that there are significant reasons to take the desired step. To achieve this, you should highlight the best features of your product or service. It’s best to make sure that the features that you really recognize are really the most important features of your product or service; you do not have to add extra information to your landing page. This page has as much information as possible to encourage them to learn more.

  • Use of headlines:

Your landing page should have headlines that clearly tell at first glance what your business does exactly. No one likes to be guided to the Landscape Pigeon, which even the most basic information is unclear.

  • Appropriate page layout:

Internet users these days access cyberspace through a variety of devices, so make sure your page landing page is protected by keeping the most important parts of your message (such as the logo, headline, call, and graphic elements necessary) to display on a wide range of displays. It is suitable.

  • Clean and impressive design:

Just like the title page, you have to make sure the visual design of your landing page is simple and at the same time stubborn. Tricky visual design, low quality or overly busy can distract the audience from your message.

  • Social Verification:

Human beings are social beings, and the words of neighbors, friends and even strangers are often more than talking about business. That is why the testing protocols, reviews, and statistics of users are all effective in persuading people to use a specific product or service to such an extent.

تبلیغات کلیکی| تبلیغات CPC

Use automated campaign management systems

In order to maximize the success of click advertising campaigns and achieve a high-quality result, automatic bid management systems can be used. The basis for the decision of this system can be set for the purposes of advertisements such as maximum profitability, maximum traffic, maximum accuracy in targeting, etc. The effectiveness of these systems is directly related to the quality and quantity of the operational data of the campaign. Therefore, ads that receive low traffic due to lack of data collected, automation systems will reduce the price or even decrease effectiveness of the price.

تبلیغات کلیکی| تبلیغات CPC

Continuous analysis 

One of the biggest benefits of mobile advertising and the Internet in general is that there is a lot of clarity about click rates and other criteria. Therefore, it’s best to use every opportunity to collect and analyze data (especially conversion data). In this way, you can understand what they are doing and what’s wrong.

Getting to know the options available

As an application publisher, you need to know how to advertise your apps and convince a huge number of users to download and install them. There are several options for you.

One of the most effective options for you is to advertise your app into other mobile apps and apps that are similar to the users of your potential users. This method can take various forms based on how ads function and how they pay:

تبلیغات CPM
  • CPM model or Cost Per Mille that, which is the initiator of digital advertising, is an old term and its roots are back to print advertising. CPM is a costing model based on every 1,000 visits, and is designed to create awareness of a great brand or app. In this way, brands pay their advertising costs for the amount of advertising that a mobile advertising platform provides for each ad.
تبلیغات کلیکی
  • The CPC or Cost Per Click model is another way to focus on ad performance than CPM. In this way, brands pay only if the user clicks on or clicked on their ad. The effectiveness of this form of advertising is that the advertising platform of the presenter also benefits from the correct implementation of the advertiser’s side. In other words, displaying advertisements at a site with the highest probability of user interaction with that ad in favor of the advertising platform and thereby earning more money.
تبلیغات نصبی
  • CPI or Cost per Install model is assigned to mobile apps. In a CPI campaign, or “cost per installation,” publishers place their digital ads on a range of media, hoping to boost the number of new installs of the ad-supported app. The advertiser’s brand will pay a certain amount for each installment directly generated by these campaigns.
تبلیغات cpa
  • CPA or Cost per Action model, also known as Pay per Action or PPA, is a pricing model for online and mobile advertising, in which the advertiser only pays for the actual implementation of the action by the user after installing the app. This action is defined according to the advertiser’s need and can cover things such as filling in the form, purchase or order.

Each of these mobile advertising methods can lead to more installation; in fact, the difference is in their cost calculation method. So, when you think of using mobile ads to attract more installers, you need to have a clear understanding of how well your campaign can measure success and cost.

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