Internet Marketing or What's That You Say?

Planning an Internet marketing strategy? Will
you get the best ROI from a CPA, CPC, PPL, or
a hybrid model? And how will you track your CPM
and determine your CTR?

HUH?

If you're new to business and trying to learn
how to market on the Internet, your first reaction
will be complete bewilderment. Come to think of it,
why am I suggesting this happens only to people who
are new to business? I'm betting you'd find Fortune
500 CEO's who don't know their PPC from their CPA.

Egads! And they say government employees talk in
acronyms and jargon. They never came up with anything
close to what you'll find on Internet marketing forums
and bulletin boards.

Daunting as it is, you'll need to know this stuff
eventually. So, pour yourself a strong cup of something
and plow through these definitions:

ROI (Return on Investment)
If your $1000 advertisement results in $1500 in sales,
your ROI is $500.

Impression
The number of times a banner or advertisement is served
(displayed) on a web site. If 10 people visited the web page
containing the banner, you would have 10 impressions. If one
person viewed it 10 times, you would still have 10 impressions.

Hit
This is a (poor) method of measuring web site traffic. A hit is
registered each time a browser request is made from a web
server. If you have a web page containing four graphics, each
page display will count as five hits.

Page View
This is a more effective way to measure web traffic. A Page
View refers to each time a page is displayed. So, if you have a
web page with four graphics, each time the page is displayed
counts as one page view but five hits.

Unique Visitors
This is the number of individuals who visit your site in a
defined time. If 200 people visit your site this week, that is
200 unique visitors. If one person visits your site 200 times,
that is one unique visitor.

Stickiness
This refers to the length of time that a visitor spends at your
site over a given period of time, or sometimes to the number of
web pages that your visitors typically download.

CAC (Customer Acquisition Cost)
This is the cost of obtaining a new customer. You divide your
total acquisition expenses by your total number of new
customers. For example, if your $100 ezine ad produces 30 new
customers, your CAC is $3.33.

CPM ) Cost Per Thousand)
This is an advertising model based on the cost of 1000
impressions of your ezine or web ads. If a publisher is selling
advertising for $45 CPM, you would pay $45 for one thousand
impressions of your advertisement, or .045 cents each per
impression.

CTR (Click Through Ratio)
The number of people who click through a link or banner
compared to the number of people who view it. If 2 site
visitors out of 100 click through a banner, you have a CTR of
2/100=.02 or 50:1 (or 2%).

Conversion Rate
The percentage of visitors to your site who perform your Most
Wanted Response -- subscribe, register, purchase, etc. If 10
out of 100 unique visitors perform your MWR, your conversion
rate is 10/100 or 10%.

CPC (Cost Per Click)
This is the cost of attracting a visitor to your web site. You
calculate it using the following formula: CPC=CPM/(CTR x 1000)

If you paid $45 CPM for a banner ad with a CTR of 1%, your CPC
would be $45 / (.01*1000) or $45/10 = $4.50
Each site visitor is costing you $4.50.

CPA (Cost Per Action)
This is an online advertising model in which the advertiser's
payment is based on the number of people who perform the Most
Wanted Response (i.e. subscribe, register, purchase, etc.)

PPC (Pay Per Click)
In this advertising model, payment is based on qualifying
clickthroughs. The publisher delivers your advertising material
to qualified viewers. You are charged for each one that clicks
through the ad.

PPL (Pay Per Lead)
In this advertising model, payment is based on qualifying leads
supplied. For example, a publisher might pay you a set amount
for each visitor you send who subsequently provides contact
information or subscribes to an ezine.

PPS (Pay Per Sale)
This is an advertising model in which you are paid a commission
for each qualified sale that results from your activities.

Hybrid Model
This is a combination of two or more marketing models. It
might, for example, combine CPM and CPC models.

Got it all sorted out? Good. HAGD. (Have a Good Day!)