Technology is a wonderful thing – but it has the potential to baffle. Acronyms, tech speak, jargon can be a big barrier for marketers looking to try new things – and much confusion can come from the many different buying models in mobile advertising. So, we’ve put together this guide to help. You’ll know your AR from your ARPU in no time.
The good news is, once it’s all been de-acronymed, mobile buying models are pretty straightforward to understand. Let’s take a look at the main mobile advertising buying models.
CPA: Cost per acquisition
In a cost per acquisition campaign, the advertiser pays when an ad garners a specified action. As the name suggests, the advertiser is paying for acquiring something – for example a registration, email address, or phone number.
CPC: Cost per click
In an cost per click campaign, the advertiser pays every time a user clicks on their ad.
CPCV: Cost per completed view
A cost per completed view campaign tends to be about video – it’s a pricing model where the advertiser pays every time a user watches a video all the way through without getting bored and skipping it.
CPM: Cost per mille (thousand impressions)
An impression occurs when an ad is displayed to a user; and ‘M’ is the roman numeral symbol for 1,000. So in a CPM campaign, the advertiser is paying for eyeballs – they pay the publisher simply for displaying the ad 1,000 times.
CPD: Cost per download
Similar to a CPA campaign, a cost per download campaign is when the advertiser pays the publisher when the ad prompts a user to download something – typically an app.
CPI: Cost per install
This one has crept in to use, but is in fact the same as cost per download
CTR: Click-through rate
This will generally be expressed as a percentage – the CTR is a measurement of how many of the users who saw the ad actually clicked on it (or tapped it on mobile).
CR: Conversion Rate
This is about tracking the user’s action after they’ve interacted with an ad. The conversion rate is the percentage of users who took action further than simply clicking on an ad – for example, the percentage of users for whom the ad prompted a purchase, sign-up, or enquiry.
eCPM: Effective cost per mille
This is a bit of a mouthful, but don’t panic. Mille means 1,000, and is referring to impressions. The EC is effective cost. So this is a revenue metric that publishers use to work out how their inventory is performing. eCPM is calculated by taking the total earnings, dividing by total number of impressions, and multiplying by 1,000. That’s (Monthly revenue / monthly impressions) x 1,000. Easy!
Hopefully this has gone some way to keeping your eyes unglazed next time you’re in a digital marketing meeting. To find out more about mobile advertising and how it can be optimised for results in your business, click on the contact us page above.