CTR, eCPM and CPC statistics, etc.. Advertising Methods

CTR=Click Through Rate.

eCPM,=effective Cost Per Mille. Cost per 1,000 impressions. (m may also be used to indicate 1,000 with the m standing for “mil” which is Latin for thousand). Sometimes called CPM - Cost per Milli method. This is usually used as a general guide to how effective the advertisement may be. (Banner Advertisements usually use this statistics as well.)

CPC=Cost Per Click, cost or cost-equivalent you are paid per click-through.

Avg CPC= Average, you are paid, cost-per-click

These statistics usually used Affiliate Marketing or/and PPC to help analyse the performance of any advertisements you may place on your web sites.

If an advertisement receves1,000 impressions. Remember the advertisement will get an impression for each time it is displayed and therefore the number of impressions could be high because you have that advertisement on each page.

Out of the 1,000 impressions you receive 45 clicks. That means that it had a CTR of 0.045 (45/1000) or 4.5%. Assuming those actual clicks earned you $5.24. This means that each actual click was worth a bit less than $0.12 (income of $5.24 divided by 45 click). That’s your Avg CPC, average cost-per-click

For example say you see a statistics of $0.08 eCPM (that is a income of $0.08 for the 1,000 advertisement impressions displayed). Or to say it another way for the for the 1,000 advertisement impressions displayed you received $0.08.

Advice: Read Wiki Ecpm. The conversion rates are just as important as the levels of visitors you receive. Of cause you need to receive visitors before any conversion can take place. Remember that a view is not a click, a person actually seeing your web site.

You are advised to carry out some Split Testing to see if you are able to improve your conversion rates  and increase your Return On Investment

Increasing the unique visits to your web site.

Also read Traffic Statistics, Unique Visitors vs Hits, CPM - Cost per Milli method, Affiliate Marketing, Pay per Clicks, PPC, Cost Per Click, CPC and Banner Advertisements

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