Wednesday, December 11, 2019

Dissecting Cost per Value

Ok, we have CPC, PPC, CPA, CTR, CPM, now let me introduce you to the wonderful world of low cost advertising called CPV or PPV. I am officially acronymed out. CPV or PPV which is Cost Per View or Pay Per View respectively is an alternative to PPC advertising to generate traffic to your CPA campaigns.

Very few people really cover or talk about CPV as I guess there has always been negative connotations associated with it such as a spyware and pop up ads etc. But used correctly, and used well, you can generate an enormous amount of traffic to your campaigns for cents on the dollar. For example I am paying an average of 19c a click (based on CPM to CTR) bidding on a credit card related keyword which costs $2.10 just to be on the first page in Google Adwords, and remember this is a very competitive market.

So What Is CPV?

CPV in its simplest form is a form of advertising where you pay every-time someone sees your ad. However, there are many different forms in which this view may take place including popup ads, pop-under, banners, desktop alerts, interstatials, search ads, and background ads. Now I will go over these shortly but for now, let me outline the main differences between a typical CPV network vs. Google PPC.

  • Your landing page isnʼt subject to a state of the art quality score algorithm that cranks your bid up to $5.00 just because it is having a bad hair day.
  • Direct advertising of affiliate links is ok. You can link directly to the advertisers page without having to set up a review site, doorway page, or something similar.
  • You can show full page ads without the visitor having to click on a small text ad to get there first.
  • There is very little competition, and practically zero competition when looking at long tail keywords.
  • Cost per click is effectively low in comparison to PPC advertising programs.

So that all sounds perfect, and what you are probably asking yourself right at this very moment is … whatʼs the catch?

Well there had to be one, and in-fact there are several, namely:

  • Most ads are shown on a CPM model. Which is Cost Per Thousand (the M being the roman numeral for a thousand). What this means is you are paying for every view of your ad whether the person clicks on it or not.
  • In a CPC model you only pay when someone actually clicks on the ad which is why Google became so damn successful.

Now CPM might be beginning to sound really bad right at this moment in time, but remember, we are looking at this from a CPA point of view where you are only asking people to enter a small amount of details in order to get paid. You are not asking them for credit card details or realistically trying to get them through a checkout path here, just a little bit of data collection.

Letʼs look at this from a numbers point of view.

Typically you will be paying $6 – $10 for 1,000 views which works out to 1c per view at the top end. Now remember, these views are not random, they are based on keyword searches or URLʼs (more on that soon) so they are targeted to a degree here. This is just a numbers game. If you get paid $9 for someone to fill out a simple insurance form then you just need two people in every thousand to fill in the form to make a tiny profit. Find a good offer, good keyword, and great ad and you are away at the races. Like any Internet Marketing business this all comes down to great tracking and Prosper202 is perfect for this kind of thing.

That being said, there are also some CPC opportunities inside of the networks too so they are always worth checking out, the compromise is how your ads get displayed. So that was the first negative, the second is volume. Most of the CPV networks rely on the visitor having some for of software installed on their computer so that the ad can be delivered.

This is usually in the form of a toolbar or piece of software installed on their computer. This usually happens when they download a free game or similar promotion. This is not necessarily spyware, all of the networks that I am going to show you will have implicitly asked permission to install this software on the users computer. So you are not going to get anywhere the volume of users in comparison to a Google search, but the numbers are still pretty high, and also tend to be a different type of person.

If you find a promotion that is working for you on one network then running the same promotion on all the other networks is a quick and easy way to scale up the traffic numbers. Now the third negative is that campaigns are usually a little more difficult to set up than you are used to with AdWords. These guys generally donʼt have an entire team just dedicated to user experience so the interfaces and processes tend to be more complex. But after you have run one campaign you will get the feel for it

Targeting Your Campaigns

There are two main types of targeting that you will be interested in with CPV and these are keyword targeting and URL targeting. The first of these you obviously know about, people enter a keyword into a search and your ad appears, but the second can be even more interesting and that is URL targeting.

URL targeting is when someone enters either a specific domain name into their browser or the domain name contains a particular keyword. When this matches your list then you ad gets displayed. This is ultra targeted.

Letʼs say a visitor goes to Dunkin Donuts site to see if there are any coupons (which a lot more people are doing in this current climate), all of a sudden they get shown an ad for free donuts (our ad), all they need to do is enter their email address directly in the ad, we get paid $1.25, and that was totally on target traffic which converts really, really well.
One thing you can also do is enter your keyword directly into Google and record the top ten organic listings and do the same for MSN and Yahoo then if people visit those sites, your ad gets shown.

This is an incredibly powerful form of advertising, and if you pick the right offers, with a good payout you can an incredible bundle of cash dreaming up these kind of campaigns. Now a couple of the networks also offer additional forms of targeting and these may work for you too, these are Geo Targetting, which you can even narrow down in some cases by city, behavioral targeting, and ad retargeting.

Behavioral targeting is where the network builds up a profile of the user, so say for instance if a user visits lots of credit card related sites then that is flagged as one of his interests, you can then target that, and even if he is not on a credit card site then you still show an offer. This kind of deal is often good for converting debt related products etc and I use this to target offers late at night (maybe they have had a drink or two), and are more willing to enter their
details. (most promoʼs can be timed).

The last type is ad retargeting. This is the most underused form of CPV, and can be very powerful for clawing back a sale. The way it works is this:

  • A user comes to your site to buy a product (say a subscription to The Edge), but they donʼt buy.
  • You cookie them by putting a 1×1 pixel image on a leaving popup, then a day or so later the network can show an Ad for you site offering a discount or incentive etc.

This is really great for eCommerce sites, and yes it is a bit on the sneaky side, but works like gangbusters.

The Type Of Promotions

The different networks offer different types of promotion mechanisms but they generally all fall into one of the following categories.

Banner Ads
These come in different sizes and shapes, and although the marketing world has fallen out of favor with this form of advertising it can still be effective.

Pop-Under Ads
These ads pop up under the current browser window, and although there are many different ways of stopping these in modern browsers they do still work. Granted, not as well as in previous years, but as always, they are worth testing.

Full Page Ads / Interstatials
These ads are shown when a user navigates from one page in a site to another. You get to show a full page ad or offer directly in their current browser window. These are really effective when on target to the viewer.

Search Ads
Typically presented in a Google style, the user is a shown a full page of search results with your offer in the top spot etc. Not as impactive as other formats.

Desktop Pop Up
These are completely unblock-able as they are delivered by a piece of software installed directly on the users  computer and will generate a popup window in front (or optionally behind) a users browser window.

Each of the above formats have different proʼs and conʼs and certain types will work for one market and not the other etc, and as always testing is key, but I would certainly start with the Full Page type offers as these convert much better for most of the campaigns that I work on.

Next Steps

The first thing you need to do is go and sign up for a couple of networks and get familiar with the interfaces, terms, etc. Most of them have pretty ok help systems, and in a future article I will show you how to get a campaign up and running.

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