Price for advertising placement

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Internet Advertising Effectiveness

The economic efficiency of an online advertising campaign depends on the competent distribution of the budget between advertising platforms. Advertisers allocate a certain amount for various communication activities and always analyze how best to distribute it.

The price of placing an advertising message is apparel company database the amount of money that the advertiser spends on these purposes. When setting the price for placement, the owners of advertising platforms, as a rule, start from the models:

prices per 1000 impressions;

click prices;

placement period.

In reality, you can also find other models based on, for example, the cost of a unique click, the number of specific actions on the part of the audience (the “pay for results” model).

Let's say the Yandex advertising platform offers advertising placement for a certain number of days or weeks. During the selected period of time, the advertising message is displayed on the main page.

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In addition, you can purchase a specified number of impressions on search results pages and customize the display of advertising territorially or according to user keywords.

In the banner network, in addition to purchasing a specific number of impressions, you can buy a specific number of clicks. In this case, the advertising message will be displayed until the number of clicks on banners from users reaches the purchased number.

Frequency of display.

Ad Frequency (AF) is the average number of online ad impressions to a unique user over a specific period of time. The following formula is used to calculate ad frequency:

AF = I / UI, where

I – number of impressions; UI – number of unique impressions.

As many experts say, the effectiveness of online advertising largely depends on the frequency of its display. Let's consider the effectiveness of online advertising using an example.

There is such a thing as "banner burnout": the more often a message is shown, the less users are interested in it with each subsequent demonstration. However, if the audience sees the ad almost constantly, then it is better remembered. Accordingly, the communicative effectiveness of online advertising increases.

To properly adjust the frequency of demonstrations in subsequent advertising campaigns, it is necessary to analyze how different indicators depend on the frequency of display. Thus, according to the results of a study by Dynamic Logic, after one display of an advertisement, the audience is 5.6% more familiar with the product/brand, after four or more — 10.4%.

CPM.

Internet Advertising Effectiveness

The CPM (cost per thousand, M (millesimus)) indicator is the Latin numeral 1000 – the price for 1000 demonstrations. The formula used for calculation is:

CPM = C / I * 1000, where

C – cost of advertising placement; I – number of impressions.

Advertising platforms use CRM as one of the main models for forming advertising costs.

The CPM indicator does not provide any information on its own. It should be considered only in a specific context: advertising medium, type of advertising platform, characteristics of the target audience, placement locations, etc.

Let's say the price for 1000 displays of a 468 x 60 banner on the main page of the business site "RosBusinessConsulting" reaches 12 dollars per thousand displays. At the same time, on the free mail site Hotbox the cost of placement is only 2 dollars.

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When purchasing clicks rather than impressions, the CPM can vary significantly depending on the response rate (CTR) of the ad.

CPUI.

The CPUI (cost per thousand unique impressions) indicator is the price for 1000 unique impressions. It reflects the costs of advertising when covering every thousand unique Internet users. The following formula is used for calculation:

CPUI = C / UI * 1000, where

C – cost of advertising placement; UI – number of unique impressions.

CPUI can vary significantly depending on the frequency of the ad message. Higher frequency increases the cost of each unique contact, lower frequency decreases it.