When you are investing in online advertising there are many ad buying options. Every week new ways to purchase and structure ads are arising. We can imagine it starts to be a bit overwhelming, therefore we listed the most used Ad Buying options below.
Fixed Fee
- You pay a fixed fee for every advertisement or mention.
- Mostly used for branded content articles/posts or big creatives such as homepage takeovers
CPM (Cost per mille)
- The advertiser pays per 1000 views/impressions
- Often used for brandings ads, such as video ads or rich media banners (Floorads and Halfpage ads)
CPC (Cost per click)
- You pay an amount per click on the ad. This can either be a fixed amount per click, or a flexible pay per click (auction based)
- This is most used for traffic campaigns, with clicks to your website as the main goal. The type of ads that you can buy CPC are mostly small ads (banners) that link to articles, blogs, inspirational pages or your product.
CPA (Cost per action) – Sometimes also referred to as CPS (Cost per Sale)
- The advertiser pays for every action. You can think of things like a registration to your newsletter, a request for a sample, a registration for a test drive etc.
- With this type of media buying, it is less important how much you pay per click, as long as you receive the right clicks. You want the people that undertake an action on your website (convert). And that is the only metric you optimize on. This often used for social media ad buying and Google Conversion campaigns.
Target ROAS/ROI
- You decide how much you’d like in return for your investment in ads (Return On Ad Spent). A ROAS of 300% translates into receiving 3 dollars in revenue for every dollar you invest in advertising spent.
- It is comparable to CPA/CPS buying, but here you fully optimize on revenue, this is what you would like to maximize. It is very important to make a calculation of front. Because it might sound great, receiving 3 dollars for every dollar invested, but did you really calculate all your costs? Not only advertising budget, but also production costs of your products, shipment costs, percentage of products that is returned etc.
Do you need help? Look no further. We’d love to help you with building a strategic plan to ensure your marketing budget is spend in the best way, with measurable results. Contact us!
