The meaning of pay per click (PPC)/cost per click (CPC)

In our knowledge blog, you will learn what pay per click or cost per click means and how to use this marketing method wisely.

In our knowledge blog, you will learn what pay per click or cost per click means and how to use this marketing method wisely.

Attention, Interest, Desire, Action: These terms are hidden behind the famous acronym AIDA. Around 120 years after its development, this advertising impact model is still the basis for designing marketing measures. And rightly so. Especially in the online sector. After all, it is important to generate attention for the ad, create interest and ultimately trigger the desire to act (action). So that the potential target group becomes real customers.

But how do I achieve this goal and what marketing measures do I use online for it? The placement of online ads is based on the two basic cost models CPM and CPC or PPC. In the following sections, we explain what the models mean and when they are used

Fixed advertising budget or costs per click

CPM means “cost per mille” and stands for the price of one ad per thousand views. CPM works very simply: The advertiser must pay a pre-defined sum every time their ad has been shown a thousand times on one or more websites. With Pay per Click (PPC), on the other hand, you pay providers such as Google or Facebook every time you click on the ad. PPC works like an auction: The company that offers the highest amount gets the advertising space. So the more I bid for a click, the more often the ad appears in search results or in the social feed. It is similar within the Yaleo network. Companies create image text ads and place them in the reading flow of the largest Swiss news portals.

Take a look at some of the ways you can use native ads here.

CPM or CPC — that is the question

Our experience shows that the CPM fixed-price compensation model is particularly suitable for generating attention and interest and thus increasing reach. The number of fade-ins and frequency capping are relevant here. The latter determines whether a user should only see an ad once or several times. The advantage of a restriction is that I can use advertising marketing in a more targeted and therefore more efficient and cost-effective way. Because most of the time, a user only clicks on an ad once. With CPM, attention for a brand can be increased. However, this does not mean that a user actually ends up on my website and thus on the product or service. Another disadvantage is that you always pay the same price — regardless of the desired service. Measuring the success of a campaign is therefore rather difficult.

CPMCost per milleCost per thousand times an ad appearsCPC/PPCCost per click/Pay per clickCosts for each click on the adCPLCost per leadCosts for obtaining contact addressesCPACost per actionCosts for an executed action

When it comes to triggering a purchase request and thus action, CPC or PPC is the best method. Although you get fewer impressions, the ads address the target group more precisely and with the right message. Anyone who clicks is actually interested in the offer and ends up directly with the product or service. And the best part: You don't pay a fixed price, just the clicks. Other variants include Cost per Lead (CPL) and Cost per Action (CPA). CPL means that you pay for the lead you have reached instead of a click. For example, to obtain email addresses for newsletters. With CPA, the advertiser pays for an action taken, such as downloading a form.

Reach your target group in a premium environment at a click price — with the Native Ad Manager

If you want to focus on your core business and keep your marketing efforts low, you can reach potential customers quickly and easily with the Yaleo ad manager. In the cost-effective pay-per-click model via the Yaleo network, you can advertise on 170 Swiss premium websites and apps. We place your message in the context of well-known platforms such as NZZ, Blick or AZ — so that you address your target group when they are most receptive. With Yaleo's Native Ad Manager, you can reach potential customers across Switzerland based on geographical or language criteria. The real-time dashboard allows you to track the performance of your ads live and edit and optimize campaigns as needed.

Interested? Try out the ad manager now and start your first campaign right away. Find out here how to design your first native ad campaign yourself in 5 easy steps with the Yaleo ad manager.

Register and test now for free!

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