Pay per click services is best for online businesses that require both instant branding and large number of visitors over their websites. The natural flow of traffic that comes over the website through SEO and SMM process is organic and increases gradually with time..
Both search engine optimization and social media optimization services are core to the online success of business websites, but for businesses that seek instant traffic over their website, pay per click campaigns are an ideal internet marketing tool. We at Grapes Digital, on careful analysis of unique requirements of our clients devise and execute pay per click campaigns that are ideal for their requirements..
CPC (Cost per Click) is a payment model in which the advertiser pays for each ad click. The most common scheme that is available in almost any advertising network. The exception is display advertising, where the payment is mainly impressions.
The pay-per-click model is available in:
Funds are debited from the account at the moment when the user clicks on the ad and goes to the site. You can calculate how much one visit costs by using the formula:
CPC = Amount of advertising costs / Total number of clicks
So, if you spent 10,000 rubles in a week. and received 1,500 clicks, one click cost 6.67 rubles.
The CPC model is found in two variations:
1. Auction - the advertiser sets the maximum bid per click, and another amount is debited - calculated at the auction. You can see the approximate figures when planning a campaign in the advertising system . This is how Yandex.Direct and Google Ads work.
With the auction model, the real price of the transition can be 20 times lower than the bid
2. Fixed - you pay for a click exactly as much as you specified in the campaign settings. If the price is too low, almost no one will see the ad. There is such a scheme in VKontakte, Facebook Ads and myTarget.
This is a universal and one of the most used payment models. Suitable in such situations:
The choice between CPC and pay-per-conversions usually stands in performance campaigns of contextual advertising systems. On social media, you have to choose between CPC and pay-per-impression (CPM). In this case, you need to focus on CTR to determine which payment model allows you to get more clicks for the same budget.
For example, you have 15,000 rubles. According to the CPC model with a cost of a click of 50 rubles. you will get 315 clicks. With the same budget and the cost of 1000 impressions of 52 rubles. you will get 293,000 impressions. If the CTR of the ad is equal to 0.2%, we get 586 transitions - almost 2 times more. In this situation, the model for impressions will be more preferable than for clicks.
CPM (Cost per Mille) is a payment model in which the advertiser pays for 1,000 ad impressions. It does not matter how many times users clicked on it - the price will not change. The model is most often used in display advertising, when reach is important.
The pay per 1000 impressions model is available in:
The advertising system deducts funds from the account for every 1000 ad impressions. To calculate how much a thousand impressions cost, use the formula:
CPM = (sum of advertising costs / number of impressions) x 1000
So, if in a week you spent 20,000 rubles. and received 350,000 impressions, CPM will be equal to 57.14 rubles.
Like the CPC model, CPM comes in two variations:
Setting the maximum bid per 1000 impressions in Facebook Ads
The CPM model is most commonly used in display advertising. It will be beneficial in such cases:
Often advertising formats imply payment only by CPM, but if there is a choice - CPC or CPM (as in VKontakte or myTarget), you should focus on CTR.
Above, we gave an example where the CPM model allowed us to get 2 times more clicks than CPC. But it also happens differently. If the CTR is low, up to 0.01%, under the same conditions, we would get 29 clicks versus 315 by CPC - that is, 10 times less.
In such a situation, there are two options: tweak ads and targeting to increase CTR, or switch to CPC to get more clicks for the same budget.
Optimized Cost Per 1,000 Impressions (oCPM) is a payment model where the cost of an ad placement is calculated per 1,000 impressions, but bids are set to achieve a given cost per conversion.
The oCPM model is available in:
oCPM works like this: the user specifies the desired cost of the target action — installing a mobile application, receiving an application, etc. The system automatically calculates the cost of 1000 impressions so as to get as many targeted actions as possible at a given price.
To use the oCPM model on VKontakte, you need to enable "Automatic price management" and select the "Orders" goal
eCPM is sometimes confused with oCPM or considered just another payment model. But it is not.
eCPM is an indicator that characterizes the revenue of an advertising platform per 1,000 ad impressions. The higher this metric, the more efficient placement works from the site owner's point of view. Calculated according to the formula:
eCPM = (total placement revenue / number of impressions) x 1000
For example, the site received 20,000 rubles from the placement, the ad was shown 800,000 times. The eCPM of this ad is 25 rubles.
Cost Per Action (CPA) is a payment model in which an advertiser pays for a specific action on a website. An action can be anything - register, pay, submit a form, or view N pages.
Advertising systems, in general, do not care what to take money for - the target action is determined by the advertiser. The main thing is that conversion tracking is set up correctly.
But from the point of view of the advertiser, it is important to decide what exactly is considered an action and what to pay for.
Pay per conversion is available at:
The advertiser is charged for each targeted user action. It does not matter how many times the ad was shown and how many users clicked on it. The cost of one target action is calculated by the formula:
CPA = amount of advertising costs / number of targeted actions
So, if you spent 10,000 rubles and received 20 registrations, one action cost you 500 rubles.
In order for the advertising system to take into account targeted actions and charge for them, you will need to set up conversion tracking .
Pay for conversions is a new model for Yandex.Direct. To use it, you need to connect Yandex.Metrica and set goals
Payment for actions is used under the following conditions:
CPA is a safer model in that you pay specifically for actions and don't waste your budget on empty traffic or impressions. But it requires statistics and customized analytics.
CPC is a useful model because it can be applied in any circumstance (including new campaigns and sites without conversion tracking set up). But if the conversion rate of your pages and ads is low, then the CPC model will bring expensive conversions.
CPM is a model that is more suitable for professionals who can achieve high CTR ads and landing page conversions. In this case, inexpensive and converting traffic is attracted.
In addition to CPA, there are similar models:
Let's consider them.
CPL (Cost per Lead) is a special case of payment for conversions. The target action is the receipt of a lead in the form of an application, registration, phone call - that is, any action that led to the sending of contextual data by a potential client.
The CPL model is available in:
Note 1 : there is no CPL model as such in Yandex and Google. There is pay for conversions. But if you set up a lead as a conversion, then in fact you will pay according to the CPL model.
Note 2 : There are quite a few posts on the web that say that Facebook has pay per lead. This is not true. There is a strategy for optimizing impressions to get maximum leads. The payment is for impressions.
Only the CPM model is available for the Facebook Lead Generation objective
Funds are debited from the advertising account for each lead received, regardless of the number of impressions, clicks, and achievement of other goals. You can find out the amount that each lead costs you using the formula:
CPL = amount of advertising costs / number of leads
If you spent 10,000 rubles. and received 20 leads, one lead cost you 500 rubles.
The pay-per-lead model is suitable where obtaining user contact information is an important stage in the sales funnel. So, for an online store where users make purchases on the site through a shopping cart, this model will not be appropriate (unlike the service sector and B2B).
Examples of suitable niches for CPL:
For example, you set up ads in Yandex.Direct that pay for conversions, and use calls as a key goal. At the same time, you know that the acceptable cost of the concluded transaction is 1000 rubles, and the conversion from a call to a transaction is 25%. So it takes 4 calls to get one deal. The maximum acceptable cost of this targeted action is 250 rubles.
Moreover, if according to the CPC model you receive 5 calls from every 100 clicks at a click price of 10 rubles, it will be more profitable to use this model. Since the call here costs 50 rubles. cheaper.
CPS (Cost per Sale) is another special case of payment for conversions. When using this model, a sale is used as a target action.
The advertiser pays for each purchase made by users who came through the advertisement. At the same time, it doesn’t matter how many goods are purchased at a time and for what amount - the fee is debited precisely for the fact of the purchase (for example, the display of the “Thank you for your purchase” page is selected as a conversion).
Pay per sale is preferred for online stores and marketplaces where users buy directly on the site.
But that's not all. The advertiser must understand how much profit an average sale brings and how much he is willing to pay for it. Therefore, setting up ecommerce tracking is important here.
Payment for installation (Сost per Install) - the installation of a mobile application is used as an action.
The model is most often used by affiliate networks specializing in mobile applications, but it is also found in advertising systems:
There is no installation fee in Yandex.Direct. In mobile app advertising, only the CPC model is available here.
The advertiser pays for each installation of a mobile application - after the user has followed the advertising link to the app store and installed it. You can calculate the installation cost using the formula:
CPI = amount of advertising spend / number of installs
So, if the advertiser spent 5000 rubles. and received 20 installations, CPI will be equal to 250 rubles.
In Google Ads, to use the CPI model, you need to select the App Ads objective
Paying for installs when promoting advertising applications is suitable if:
If you are just entering the market and do not yet know the optimal installation price, you can test the CPC and CPM models after setting up the analytics. Look at how much it costs to install and try to reduce this figure using the CPI model.
Cost per View is a payment model in which the advertiser pays for each view of an advertising video. It is used in media advertising when it is not the actions of users after watching the video that are important, but the number of views themselves.
Currently, this payment model for video ads is available in:
Interestingly, myTarget calls this payment model CPA - by action they mean video views. This is not to say that this is not true, but still, the CPA model makes it possible to set up a target action (as in Direct or Google Ads). Therefore, we attribute the pay-per-view model in myTarget to CPV.
Funds are deducted from the advertiser's account for each viewing of the commercial that meets the specified conditions. So, in Facebook Ads, you can choose what you want - the maximum number of views for at least two seconds or the searches to the end.
Configure the CPV model in Facebook Ads
You can calculate the cost per view using the formula:
CPV = amount of advertising costs / number of views
If the advertiser spent 10,000 Rupees. and received 1000 views, CPV is 10 Rupees.
Pay per view is suitable when it is important for the user to watch the ad to the end, or at least to a certain point - to see and hear everything that you wanted to show and tell him. This is true, for example, when the goal of an advertising campaign is to increase loyalty or build brand reputation.
If it is important to get sales or maximum reach, other models may be better suited - CPM, CPC, CPA.
Cost per Engagement is a payment model in which the advertiser pays after the user interacts with the ad.
Payment for interactions is available in:
Funds from the advertising account are deducted every time the user interacts with the post/ad.
This model can work in different ways. For example, on Google, an interaction counts if a user hovers over an ad and holds it for at least two seconds. In this case, the ad "expands". And in Facebook there is a payment for “Like” marks to an advertising post or page.
To use the CPE model in Google Ads, you need to select the objective "Brand and product interest" and the campaign type "CMS"
Paying for interaction is effective when you want to make sure that you connect with the target audience, and not show ads for nothing. This is exactly what Google's CPE model solves.
Facebook offers to pay for the interaction of those who need engagement within the social network itself. This is relevant when you are developing a community or page and want to attract new subscribers and increase the activity of existing ones.
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