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CPA | Online Advertising & Marketing Proffesional blog

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

CTR – Click Through Rate

Filed under: Glossary, online marketing advertisement — Tags: , , , , , , , , , — clickTAGer @ 12:34 am 2009/02/20

Click-Through-Rate (CTR)

The number of times a link is clicked on divided by the number of impressions. Main Performance Indicator for Online ads.

For example CTR 1%  =  1000 impressions and 10 clicks

CTR = clicks/Impressions*100

 

Or simple formula in excel:

ctr_excel_formula_1

Excel formula

 

ctr_excel_formula_2

 

ctr_excel_formula_3

 

ctr_excel_formula_4

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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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