Cost Per Click, Cost Per Thousand Impressions & Cost Per Action

Starting out in the world of internet marketing and advertising can prove to be quite a daunting task even for those who are well prepared and understand the basics of marketing campaigns. The stakes are simply too high to just throw yourself into the game ill prepared. Here are some of the most important pieces of information that will help you start off on the right foot.

Along with Yahoo, Microsoft and Amazon, Google is one of the largest advertising network on the internet. Google offers a program called AdWords which is one of the most powerful tools available today for webmasters and website owners. Google Adwords enables them to create their own custom advertisements, either text or images or both, and publish them across the internet. To do this, Google AdWords work in conjunction with Google Adsense. Google AdSense is simply a network of partner websites on which Google displays targeted advertisements published through the Google AdWords program.

Setting up your first account in Google AdWords is an easy task. Apart from the usual personal information, you will also be required to provide some information about your advertising campaign. First off, you will need to decide on the preferred budget for your campaign. Do not take this lightly because the costs of running an advertising campaign with Google AdWords, or on any of the other ad networks, can scale up to really large investments. You can specify the amount that you would like to pay when site visitors click on your advertisement. This is known as the “Cost Per Click (CPC)” model. Your CPC should be carefully planned and Google will help you to make this decision by suggesting an optimum budget for your campaign. The other model is known as “Cost Per One Thousand Impressions” (CPM) where you pay a fixed amount for a thousand impressions of your advertisement, If you go with the CPM model over the CPC, you could still calculate your CPC through your CPM. For example: for every CPM, you will receive a projected rate of clicks, for example 3 %, or 30 clicks at $1 per thousand impressions. This means that you will eventually end up having an approximately 3 cent CPC.

Another viable model offered by all internet advertising networks is the “Cost Per Action (CPA)” model, or Cost Per Lead as it is often known. CPA is more commonly used among affiliate marketing companies. CPA offers measurable and quantifiable metrics correlating marketing costs vs revenues generated. For example: if you have a $5000 budget and a $ 125 CPA, then your revenues would be from the sale of 40 units.

Well seasoned internet marketers have mastered the art of an effective internet marketing campaigns and are raking in huge profits harvesting the increasing number of people who are going online for their daily activities. It can be a daunting task for any newbie internet marketer to effectively use this model to make money. Thus the best advice for such beginners is to really understand the basic concepts, try out the campaigns with limited budgets, learn by trial and error understand what works and what doesn?t to eventually create the perfect campaign for yourself. With a sharp mind and diligent work, you could be making the big moolah yourself. Good Luck!

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Contextual advertising is not a new concept and has been around for a good decade or so. It has been tried and tested by many companies, though most successfully by Google with its AdWords program

Contextual advertising is an ad generation & delivery mechanism based on the content of any web page that is currently being viewed. The ad generation system understands semantically when site visitors are viewing a page about sports, for example. It knows by examining words on the page and many other factors. It performs semantic analysis of the page, breaking down the page to its core components to understand the “about-ness” of the page. In this example, it understands and delivers sports-related ad. That’s the “contextual” part. The sports ad fits the “context,” or subject, of the page.

Google was the first company to successfully work on this technology and generate huge revenues. They launched the “AdWords” program which delivers contextually targeted ads next to the search results. It was hugely successful because of its simplicity and contextual relevance.

Google followed up its act by releasing a another new program called “AdSense” which allowed contextual ads to be displayed on any web page as long as they embed a piece of code from Google in their websites. The ads were contextually relevant and targeted as per the page they were embedded in.

This also had a dramatic effect on the advertises as now they could release more value out of their marketing dollars, had a better understanding of connecting with its user base and could easily track the progress of their campaigns, visitors, and even track all the individual purchases.

Since, many other companies like Yahoo, Microsoft & Amazon have launched their own mechanism of generating and delivering contextual advertisements which have been well accepted by the business world.

MyContextualAds.com is a new company with a new thought about providing contextual advertisements ? taking into consideration the user profile, social networking information and other time based information for generating highly targeted & contextually relevant advertisements. Web site visitors will never have to see any ads that are not targeted to them or relevant to them ? that is the promise of next generation contextual ads.

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