You’ve probably heard about performance marketing and maybe are a little bit confused. You’ve seen CPI/CPA/CPE/CP-WHAT? all over the internet and don’t understand a thing.
Maybe you do have a fair idea of how each model works but aren’t quite sure how each would fit your business plan . Well that ends here. To properly understand what we do and how we operate, we’re going to give you a step-by-step guide in just how performance marketing works and what it entails to help give you a clearer idea.
Firstly, what is performance-based marketing?
It’s basically a model which advertisers are only invoiced according to how well an Ad performs. Money is only paid out if results are generated or interest is sparked. It is a monetization tool and is extremely popular in today’s market.
Within performance-based advertising, there are many ways to advertise and display products. Each model is a different way of making money and possesses its own advantages and ways of working traffic.
So, we’ll talk you through each type and show you the benefits to each side.
- CPM (Cost per Mille) charges advertisers for impressions. That is to say, the amount of times the advertisement is viewed. We capture the traffic for our advertising source. The CPM model is very visual and successful at capturing users. It is widely used as the revenue is predictable.
- CPA (Cost Per Acquisition) is effectively the cost of converting someone into a new customer, a new acquisition. It is the most popular pricing model in affiliate marketing. CPA only pays out when ad advert delivers an acquisition, when the desired outcome is achieved.
- CPC (Cost per Click) is when the advertiser pays the publisher only when the Ad is clicked. CPC measures how many times an Ad is clicked and is successful in measuring interest and attention created. This system works really well, because you are only paying for positive reactions to your advert. It gives you a clear idea of who your buyers actually are.
- CPS (Cost per Sales) is the amount an advertiser pays for the sales generated by an Ad. CPS differs from CPA in the sense that commission on a sale is only paid if the lead results in a purchase.
- CPL (Cost per Lead) is where the advertiser pays an already established price for each lead generated. Advertisers pay only for an interested lead. That is to say, a person who has signed up to an offer, who has willingly given information about themselves. CPL is useful as it is provides guaranteed leads, is cost-effective and can be measured very easily.
- CPV (Cost per View) is when you pay to have video Ad watched. It refers to video advertising. You are able to evaluate how well engaged your viewers are with the content, from where they view it and where (or if) they stop watching the content and lose interest.
- CPI (Cost per Install) gives app developers, as well as mobile media buyers and affiliates the opportunity to monetize their Apps through promoting Apps or games. The advertiser is only charged when the App is installed by a user. We are extremely interested on increasing our CPI as we are currently launching more and more Video CPI campaigns.
- CPE (Cost per Engagement). In this model the ultimate goal is the search for a later installation metric to generate value to the company and it will vary depending on the criteria and KPI’s of each advertiser. For instance, on an e-commerce after installing the App the CPE would be getting a purchase or on a market place after installing the App the CPE would be selling an item, etc. The CPE model is probably the newest of them all and an interesting one to keep your eye on.
Does that help make things a little clearer?
So what if you were to have an performance-based advertising company that could offer you all these models on all devices within a wide range of verticals?
Unlike many other mobile performance advertising agencies, mobusi uses all types to generate traffic. We see the pros and cons in each method and want to offer our clients and potential clients all possible options when it comes to boosting and monetizing their campaigns. We employ these different models through our various departments as we understand that each model can have benefits depending on the campaign our clients are looking for.
We also implement our pricing models on a wide range of platforms. We work every type of traffic, generating it from: Apps, SEM, Direct Publishers, in-app advertising, RTB and Affiliate programmes.
Not to mention that we also work within the following verticals: Entertainment, Woman, Gaming, Dating, Mobile Content, Sweepstakes, Branding, Utilities, Shopping, Travel, Kids, APK and SMS Campaigns.
So look no further. If you want to get the best out of your brand, monetize and increase your traffic, mobusi does all the hard work for you , providing you with the best options and results.
Interested? Get in touch with our team for more details!