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Marketing How To- Make Sense Of Online Marketing Metrics

Marketing How To – Make Sense Of Online Marketing Metrics

Online marketing can add immense value to the business. Another advantage of online marketing is that you can target your audience by various criteria (like country, age, sex, etc). Successful Internet marketers do extensive analysis of advertising and marketing figures using various tools like Google Analytics.

Analyzing online advertising and marketing figures can be a challenge for a newbie. However, is very important to understand some concepts (like CPC, CPM, CTR and RPM) to succeed in Internet marketing.

Here is a brief description of some online marketing metrics

CPC (Cost Per Click)

The CPC is the amount you as an advertiser pay each time someone clicks on your advertisement. A click here represents a visit by someone to the advertised site. This metric helps you a great deal in determining your ad spend. CPC determines the financial success of your campaign.

CPM (Cost Per Mille)

Some Internet marketing experts believe that CPM is the future of Internet marketing. In the CPM advertising model, the advertiser and the publisher agree upon a fixed amount for 1000 impressions. If the webpage where the advertisement is placed gets 1000 visits, the advertiser has to pay the agreed amount, irrespective of whether there is a click or not.

CPM is usually capped to one count per individual visitor in a certain period of time. This is done to prevent fraud. The CPM amount depends on many factors like the popularity of the niche and the traffic generated by the website.

RPM (Revenue Per Mille)

The RPM is similar to CPM. However, it measures revenue from 1000 impressions instead of the cost of the ads. Publishers make use of this metric extensively as it tells them how much to expect from 1000 impressions.

CR (Conversion Rate)

Conversion rate is the percentage of visitors who take a desired action (e.g. make a purchase or click an ad). This metric helps online marketers take vital decisions regarding their business.

CTR (Click-Through Rate)

The CTR, which is expressed as a percentage, is the average number of click-throughs per 100 impressions. It has to be noted here that it includes only those people who would have reached the website by clicking on the advertisement. This metric measures the immediate response generated by an advertisement.

Obtaining a clear understanding of how to analyze marketing how to and advertising metrics will go a long way in creating effective online marketing campaigns. Needless to say, effective marketing campaigns bring in huge revenues to the business.

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