The C suite for advertisement!

You might have heard the C suite for the corporate world. Let’s explore the C suite in the the advertisement world today. There are multiple metrics tracked in the internet marketing for advertising purposes. Let’s go through a few of them one by one.

CPM stands for Cost per mille, a Latin word for thousands. Basically, the cost for every thousands impressions. Impressions are also known as ad view. For instance if a website is charging $2 CPM that means the advertiser needs to pay 2 bucks for every thousand ad views. Don’t mistake ad view for page view. There may be multiple ads on the same page. Maybe one on the vertical, one on the the horizontal and more. If we take into account only the horizontal and vertical ones, it will be 2 views whereas the page view count is one. If your end goal is to just create the awareness about your product among the users, CPM will be a great choice. But if you want to ensure that users visits the website/app too then CPM may not be a great choice. Because many of us don’t click on the ads.

CTR stands for Click Through Rate. It is a ratio of total number of click on the ad to the total number of impressions. Everyone who sees the ads doesn’t click on the ad. Since many of us use ad blockers or use brave, we don’t even view the ad at the first place. There is no ideal CTR value. It totally depends on your goal. If your goal is to just bring in new traffic to your website to increase the page viewer, CTR is a great option. However if you want to ensure that the user is further buying a product, then CTR may not be a good option. There might be a higher CTR ratio but sales may be low. Further even the higher CTR ratio may be due to the bots or any other fraudulent activities. The higher the CTR ratio, the higher the expense.

CPA stands for Cost per Acquisition/Action. The cost to acquire one paying customer. CPA ensures that the user is buying a product or downloading the app or any other action that you want to be completed. This metric is the costliest one. After all you want the user not only to view the ad but also to click it then buy the product or register on your site.

From above three metrics we can conclude that ad personalisation is of utmost significance to the Tech giants. Without personalisation it’s difficult to get you to click to the ads and to encourage you to do the actions. That’s how they make money after all.