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online marketing advertisement | Online Advertising & Marketing Proffesional blog - Part 2

How Online Advertisement works. Something about Banners and other forms of ads ;)

CPO: Cost Per Order = Total Commission/sales.

CPO: Cost Per Order = Total Commission/sales.

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FRM/FFM – Flat Rate (Month)/Flat Fee (Month)

FRM – Flat Rate (Month) – Ad-slot Cost for Month

FFM – Flat Fee (Month) – Ad-slot Cost for Month

Advertising model – based on time period Month.

For example you pay for 2 months 10.000$  - banner on site – start page + internal pages.

FRM = 5.000$month. Total 10.000$= 5.000$ * 2months.

Simplest and oldest cost model for Internet advertising. Publishers like this model – because they know exact income of advertising, and they can plan income for future. Larger the period (for example month vs week) – larger guaranty for publisher.

Similar models: FRD – Flat Rate DayFRW – Flat Rate Week.

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FRW/FFW – Flat Rate (Week)/Flat Fee (Week)

FRW – Flat Rate (Week) – Ad-slot Cost for Week

FFW – Flat Fee (Week) – Ad-slot Cost of Week

Advertising model – based on time period Week.

For example you pay for 2 weeks 1.000$  - banner on site front page.

FRW = 500$week. Total 1.000$  = 500$ * 2weeks.

Simplest and oldest cost model for Internet advertising. Publishers like this model – because they know exact income of advertising, and they can plan income for future. Larger the period (for example week vs day) – larger guaranty for publisher.

Similar models: FRD – Flat Rate Day, FRM – Flat Rate Month.

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FRD/FFD – Flat Rate (Day)/Flat Fee (Day)

FRD – Flat Rate (Day) – Ad-slot Cost for Day

FFD – Flat Fee (Day) – Ad-slot Cost of Day

Advertising model – based on time period.

For example you pay for 10 days 1000$  - banner on site front page.

FRD = 100$day. Total 100$  = 10$ * 10days.

Simplest and oldest cost model for internet advertising. Publishers like this model – because they know exact income of advertising, and they can plan income for future. 

Similar models: FRW – Flat Rate Week, FRM – Flat Rate Month.

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CPM – Cost per Mile (CPT – cost per thousand)

Price model of Internet advertising based on impressions. CPM is the same like CPT. This model is more similar to Flat Rate then CPC/CPA.

CPM – Cost per Mile (Cost per 1000 Impressions)

CPT – Cost Per Thousand (Cost per 1000 Impressions)

CPI – Cost Per Impression (Cost per 1 Impression)

If you are advertiser: You pay for impressions, CPM is price for 1000 impressions. 

If you are publisher: You earn from ad slot position impressions. 

Example:

CPM = 10$ = 1000 impressions of ad costs 10$

Default CPM is overall (not for unique user) impressions without any guaranties that user saw the ad. Impression is generated always when HTML is loaded, but user go for next page without visual impact with ad (for example ad in context and under scrolling area).

User reloading factor:

Ad-servers have/not have reload filters – if user reloads the same page several times – ads on CPM model will or not use impression pool:

  Ad-network/site without “reload” filter Ad-network/site with “reload” filter
User reloads the same page 100 times
  • Your ad is showed 100 times.
  • Your ad’s impression pool = pool – 100 impressions.
  • 1 user costs 0,1 CPM
  • Your ad is showed 100 times  but 99 impressions excluded from impression count.
  • Your ad’s impression pool = pool – 1 impression.
  • 1 user costs 0,001 CPM
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