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

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Online banner campaign: Unique visitor vs clicks (CTRu vs CTR)

CTR is higher then CTR (unique) for game-banners.

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CTR – Click Through Rate

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:
 

 

 

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Banner Burnout = Decreasing CTR

Banner (ad slot) CTR is down after time. Why?

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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 [...]

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CPC – Cost Per Click

 

CPC – cost per click
Cost of Online Advertising  based on clicks. Simplest performance based model. 
PPC – Pay Per Click (the same model like CPC but for search engines)

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