Search Engine Optimization
Search Engine Optimization
Search engine optimization (SEO) is the process of affecting the visibility of a website or a web page in a search engine's "natural" or un-paid ("organic") search results. In general, the earlier (or higher ranked on the search results page), and more frequently a site appears in the search results list, the more visitors it will receive from the search engine's users. SEO may target different kinds of search, including image search, local search, video search, academic search, news search and industry-specific vertical search engines.
As an Internet marketing strategy, SEO considers how search engines work, what people search for, the actual search terms or keywords typed into search engines and which search engines are preferred by their targeted audience. Optimizing a website may involve editing its content, HTML and associated coding to both increase its relevance to specific keywords and to remove barriers to the indexing activities of search engines. Promoting a site to increase the number of backlinks, or inbound links, is another SEO tactic.
Search Engine Optimization is the process of getting your website to show up on the first page of Google and other popular search engines for keywords or key phrases that your potential customers are searching for.
When an individual wishes to book a hotel room in another city or a Country, he will land up to famous search engines like Google, Bing or Yahoo on internet and enter their requirement. Generally he will click on the web sites that appear on top of the first page.
How is that you can display your site in the forefront and have maximum advertisement of your site. This can be achieved with the help of.
There are three elements involved in SEO :
Organic Search SEO :
Organic search keeps your website appearing on the search result pages for a long time because your website gives the search engines exactly what they want relevancy.
Local Search SEO:
Local search search engine optimization techniques aim to get your name, website and business in front of the people that are most likely to use it's those that are physically located near it. This is like JUSTDIAL OR Yellow Pages. Hence local SEO in simple explanation: if you have a computer Sales shop in city potential customers will find your shop by searching locally by entering that city name.
Paid Search SEO:
Paid search engine optimization is buying top position on the result page of a search engine this is done by AdWords, this is termed as sponsored search results because advertisers have pre-paid campaigns with search engines that help promote their services or websites.
- Search Engine Marketing (SEM) :
Search Engine Marketing (SEM) :
SEM can be termed in simple terms as methods used to make Your website more visible on search engines so that more traffic can be diverted to your website. SEM is the combination of SEO and Pay Per Click. SEM can be helpful in marketing of Your website on the electronic media.
HOW SEO/SEM IS USEFUL
- Increased visitors
- Increased sales
- Target traffic
- Increased click-through rates
80% visitors don't go beyond first or to a maximum they pass to second page of search. If you don't have your website on page one then you will have low traffic to your website, which eventually affects your online business. Many good looking website ends up with no traffic because they lack search engine optimization. Hence Zest Studio has pioneers which will help and offer solutions at low cost and increase the ranking of your website and make sure you attract maximum online traffic.
Search engine marketing (SEM) is a form of Internet marketing that involves the promotion of websites by increasing their visibility in search engine results pages (SERPs) through optimization and advertising. SEM may use search engine optimization (SEO), that adjusts or rewrites website content to achieve a higher ranking in search engine results pages or use pay per click listings.
In 2012, North American advertisers spent US$19.51 billion on search engine marketing. The largest SEM vendors were Google AdWords and Bing Ads As of 2006, SEM was growing much faster than traditional advertising and even other channels of online marketing. Because of the complex technology, a secondary 'search marketing agency' market has evolved. Some marketers have difficulty understanding the intricacies of search engine marketing and choose to rely on third party agencies to manage their search marketing.
Methods and Metrics
There are four categories of methods and metrics used to optimize websites through search engine marketing. Keyword research and analysis involves three "steps": ensuring the site can be indexed in the search engines, finding the most relevant and popular keywords for the site and its products, and using those keywords on the site in a way that will generate and convert traffic.
Website saturation and popularity, or how much presence a website has on search engines, can be analyzed through the number of pages of the site that are indexed on search engines (saturation) and how many backlinks the site has (popularity). It requires pages to contain keywords people are looking for and ensure that they rank high enough in search engine rankings. Most search engines include some form of link popularity in their ranking algorithms. The following are major tools measuring various aspects of saturation and link popularity: Link Popularity, Top 10 Google Analysis, and Marketleap's Link Popularity and Search Engine Saturation.
Whois tools reveal the owners of various websites, and can provide valuable information relating to copyright and trademark issues.
Paid inclusion involves a search engine company charging fees for the inclusion of a website in their results pages. Also known as sponsored listings, paid inclusion products are provided by most search engine companies either in the main results area, or as a separately identified advertising area.
The fee structure is both a filter against superfluous submissions and a revenue generator. Typically, the fee covers an annual subscription for one webpage, which will automatically be catalogued on a regular basis. However, some companies are experimenting with non-subscription based fee structures where purchased listings are displayed permanently. A per-click fee may also apply. Each search engine is different. Some sites allow only paid inclusion, although these have had little success. More frequently, many search engines, like Yahoo!, mix paid inclusion (per-page and per-click fee) with results from web crawling. Others, like Google (and as of 2006, Ask.com), do not let webmasters pay to be in their search engine listing (advertisements are shown separately and labeled as such).
Some detractors of paid inclusion allege that it causes searches to return results based more on the economic standing of the interests of a web site, and less on the relevancy of that site to end-users.
Often the line between pay per click advertising and paid inclusion is debatable. Some have lobbied for any paid listings to be labeled as an advertisement, while defenders insist they are not actually ads since the webmasters do not control the content of the listing, its ranking, or even whether it is shown to any users. Another advantage of paid inclusion is that it allows site owners to specify particular schedules for crawling pages. In the general case, one has no control as to when their page will be crawled or added to a search engine index. Paid inclusion proves to be particularly useful for cases where pages are dynamically generated and frequently modified.
Paid inclusion is a search engine marketing method in itself, but also a tool of search engine optimization, since experts and firms can test out different approaches to improving ranking, and see the results often within a couple of days, instead of waiting weeks or months. Knowledge gained this way can be used to optimize other web pages, without paying the search engine company.
Comparison with SEO
SEM is the wider discipline that incorporates SEO. SEM includes both paid search results (using tools like Google Adwords or Bing Ads, formerly known as Microsoft adCenter) and organic search results (SEO). SEM uses paid advertising with AdWords or Bing Ads, pay per click (particularly beneficial for local providers as it enables potential consumers to contact a company directly with one click), article submissions, advertising and making sure SEO has been done. A keyword analysis is performed for both SEO and SEM, but not necessarily at the same time. SEM and SEO both need to be monitored and updated frequently to reflect evolving best practices.
In some contexts, the term SEM is used exclusively to mean pay per click advertising, particularly in the commercial advertising and marketing communities which have a vested interest in this narrow definition. Such usage excludes the wider search marketing community that is engaged in other forms of SEM such as search engine optimization and search retargeting.
Another part of SEM is social media marketing (SMM). SMM is a type of marketing that involves exploiting social media to influence consumers that one company’s products and/or services are valuable. Some of the latest theoretical advances include search engine marketing management (SEMM). SEMM relates to activities including SEO but focuses on return on investment (ROI) management instead of relevant traffic building (as is the case of mainstream SEO). SEMM also integrates organic SEO, trying to achieve top ranking without using paid means to achieve it, and pay per click SEO. For example some of the attention is placed on the web page layout design and how content and information is displayed to the website visitor.
- Seo Process :
SEO PROCESS :
SEO is the process of preparing your website or web page to improve visibility and presence online and maximize its performance in search engines. At WebHugh, our SEO process experts develop a custom made strategy and plan for each client depending on their product and target audience. Our team goes through the analysis of different elements and processes before recommending any change, addition or variation to the client, thereby increasing relevance to specific keywords and to remove barriers to the indexing activities of search engines.
Here are the processes what we follow for SEO:
- Step1: Website Site Analysis Report
- Step2: Competition Analysis
- Step3: Basic Keyword Research Identification & Analysis
- Step4: Keyword Mapping
- Step5: Preparation of detailed SEO Strategy and Plan
- Step6: On page Implementations
- Step7: Off page Implementations
- Step8: Reports (Bi-weekly or Monthly)
- SEO Methods :
The leading search engines, such as Google, Bing and Yahoo!, use crawlers to find pages for their algorithmic search results. Pages that are linked from other search engine indexed pages do not need to be submitted because they are found automatically. Some search engines, notably Yahoo!, operate a paid submission service that guarantee crawling for either a set fee or cost per click. Such programs usually guarantee inclusion in the database, but do not guarantee specific ranking within the search results. Two major directories, the Yahoo Directory and the Open Directory Project both require manual submission and human editorial review. Google offers Google Webmaster Tools, for which an XML Sitemap feed can be created and submitted for free to ensure that all pages are found, especially pages that are not discoverable by automatically following links.
Search engine crawlers may look at a number of different factors when crawling a site. Not every page is indexed by the search engines. Distance of pages from the root directory of a site may also be a factor in whether or not pages get crawled.
To avoid undesirable content in the search indexes, webmasters can instruct spiders not to crawl certain files or directories through the standard robots.txt file in the root directory of the domain. Additionally, a page can be explicitly excluded from a search engine's database by using a meta tag specific to robots. When a search engine visits a site, the robots.txt located in the root directory is the first file crawled. The robots.txt file is then parsed, and will instruct the robot as to which pages are not to be crawled. As a search engine crawler may keep a cached copy of this file, it may on occasion crawl pages a webmaster does not wish crawled. Pages typically prevented from being crawled include login specific pages such as shopping carts and user-specific content such as search results from internal searches. In March 2007, Google warned webmasters that they should prevent indexing of internal search results because those pages are considered search spam.
A variety of methods can increase the prominence of a webpage within the search results. Cross linking between pages of the same website to provide more links to most important pages may improve its visibility. Writing content that includes frequently searched keyword phrase, so as to be relevant to a wide variety of search queries will tend to increase traffic. Updating content so as to keep search engines crawling back frequently can give additional weight to a site. Adding relevant keywords to a web page's meta data, including the title tag and meta description, will tend to improve the relevancy of a site's search listings, thus increasing traffic. URL normalization of web pages accessible via multiple urls, using the canonical link element or via 301 redirects can help make sure links to different versions of the url all count towards the page's link popularity score.
- White hat versus black hat techniques :
White hat versus black hat techniques
SEO techniques can be classified into two broad categories: techniques that search engines recommend as part of good design, and those techniques of which search engines do not approve. The search engines attempt to minimize the effect of the latter, among them spamdexing. Industry commentators have classified these methods, and the practitioners who employ them, as either white hat SEO, or black hat SEO. White hats tend to produce results that last a long time, whereas black hats anticipate that their sites may eventually be banned either temporarily or permanently once the search engines discover what they are doing.
An SEO technique is considered white hat if it conforms to the search engines' guidelines and involves no deception. As the search engine guidelines are not written as a series of rules or commandments, this is an important distinction to note. White hat SEO is not just about following guidelines, but is about ensuring that the content a search engine indexes and subsequently ranks is the same content a user will see. White hat advice is generally summed up as creating content for users, not for search engines, and then making that content easily accessible to the spiders, rather than attempting to trick the algorithm from its intended purpose. White hat SEO is in many ways similar to web development that promotes accessibility, although the two are not identical.
Black hat SEO attempts to improve rankings in ways that are disapproved of by the search engines, or involve deception. One black hat technique uses text that is hidden, either as text colored similar to the background, in an invisible div, or positioned off screen. Another method gives a different page depending on whether the page is being requested by a human visitor or a search engine, a technique known as cloaking.
Search engines may penalize sites they discover using black hat methods, either by reducing their rankings or eliminating their listings from their databases altogether. Such penalties can be applied either automatically by the search engines' algorithms, or by a manual site review. One example was the February 2006 Google removal of both BMW Germany and Ricoh Germany for use of deceptive practices. Both companies, however, quickly apologized, fixed the offending pages, and were restored to Google's list.
- Link Building :
LINK BUILDING :
The process of establishing ethical inbound links to a website making it receptive to search engines can be termed as link building. It improves the search engine ranking and drive targeted traffic to the website. Also, Link is a key for an effective SEO campaign. WebHugh understands that a quality link building from established sites can be time consuming and frustrating process. We use sophisticated link analysis to discover how pages are related to each other, and our ethical link building practices improve page ranking, keyword ranking and generate targeted traffic to the website.
Here are few of the link building practices we follow :
- 1. One way link building
- 2. Link Exchange
- 3. Linking through blogs
- 4. Create blogs
- 5. Link wheel creation.
- Seo Content Writing :
SEO CONTENT WRITING
SEO content writing is a amalgamation of technical and creative writing, wherein we assimilate keywords in the content to improve the ranking through search engines without interrupting the flow of the content. The main purpose of SEO writing is to deliver contents that can communicate with the targeted audience and remain receptive to search engines.
Leonsoft offers you creative, well written, informative and keyword rich content to improve your online presence at affordable rates. We take pride in the fact that our team of content writers have unmatched technical expertise, a flawless language, and are specialist in the SEO domain. Without compromising on quality we promise to deliver you content, that will not only improve your online visibility, but add value to your site. Remember Leonsoft, while thinking of revenue through SEO and content.
- On Page Optimization :
ON PAGE OPTIMIZATION
Getting a good ranking in search engine is not an easy task to accomplish, with congested online traffic and new companies popping up every minute. On page optimization, involves SEO performed on a website and is a major factor associated with website promotion.
Leonsoft on page SEO team in collaboration with the research and analysis wing identifies the key elements important for on page optimization and works on it. Website structure, meta tags, content optimization, internal linking, sitemap creation, validations, head tags (H1 to H6), title attributes, image and hyperlink optimization are the major elements we focus. We understand that more than the content, it is the keywords that promote your ranking in search engines.
- Off Page Optimization :
OFF PAGE OPTIMIZATION
Off page optimization, is the work undertaken outside the website and is not usually visible to the onlooker but results in pushing search engine rankings. The better the off page optimization, the better the site performance in search engine rankings. Leonsoft strikes with link building, reduced server load time and content promotion as off page optimization techniques. Here, are few off-page optimization checklist listed by our SEO team :
- Website Submission to Search Engines Manual
- Website Submission to Directories Manual
- Article Writing and Submission
- Social Bookmarking
- Social Networking Profile Creation (Twitter, Facebook, LinkedIn, etc...)
- Blog Creation & Blog Posting
- Building Links and Traffic Commenting on Related Blogs
- Classified Ads Submission
- Forum Participation
- Press Release writing & Distribution
- Keyword Research :
Keyword research is the process of determining the actual words people use when searching online. It is one of the basic and fundamental task for any SEO initiative.
Leonsoft understands and keeps a pulse check on its customers and their business. Our keyword research and analysis wing is up to date on its assessment of market economics and trends. They predict shifts in demand or change in market conditions enabling us to market only those products, services and contents which has a demand online. Search engine optimization through keyword research involves constant experimentation and improvement. The main aim of the keyword research is to :
- 1. Identify the most common keywords used by customers.
- 2. Identify keywords, which are search engine sensitive.
- 3. Identify keywords, which can rank higher with SEO.
- 4. Develop content based on popular terminology.
- 5. Getting relevant traffic.
- 6. Target the right audience.
In our endeavour to excel, we have our clients and their vision in mind.
- Website Seo Analysis :
Website Seo Analysis
SEO analysis is a methodology to rate the performance of a website with respect to its visibility and accessibility on the web through targeted keywords on search engines.
Leonsoft can boast to have a pool of analysts and engineers with unmatched professional credentials to take up the SEO challenge. These specialists do an in-depth study of the website and its various elements that include the website structure, loading efficiency, meta-tags, page contents, navigational structure, URL optimization, HTML, XML, Sitemaps, image optimization, user friendliness, search engine sensitivity, etc. The Leonsoft team also conducts a detailed study to generate a report which can highlight any barrier or hindrance for search engine optimization. The ultimate aim of the task is to identify the necessary changes to improve visibility and to remove any website indexing barriers. Also, we take some key steps to improve certain elements of the client's website architecture and design, thereby enabling the website to get indexed and increase the likelihood of a higher rank online. Finally, do approach us for a free website analysis and SEO review.
To ensure top positions of your website, our Search Engine Optimization tasks include:
- Site traffic analysis
- Page Rank and Domain age analysis
- Competitor website analysis
- Keyword research & analysis
- Meta Tags creation and optimization
- Image Optimization
- Video Optimization
- Header Tags Optimization
- Anchor Tag Optimization
- Hyperlink Optimization
- Optimize Cascading Style Sheets
- HTML Code Structure Improvement
- Navigation and File Structure Improvement
- Broken links analysis & correction
- Search engine friendly URL suggestion
- Content Optimization
- HTML Sitemap creation and optimization
- XML Sitemap creation and submission
- Page Load Analysis
- 301 Redirect Analysis
- 404 Error Optimization
- Robots.txt file creation and optimization
- Link building strategies
- Google analytics integration
- Yahoo / Bing webmaster setup
- Press Release submission
- Article submission
- Directory submission
- Blog submission
- Pay Per Click
- Pay Per Click :
Pay Per Click
Pay-per-click (PPC) (also called cost per click) is an internet advertising model used to direct traffic to websites, in which advertisers pay the publisher (typically a website owner) when the ad is clicked. It is defined simply as -the amount spent to get an advertisement clicked. With search engines, advertisers typically bid on keyword phrases relevant to their target market. Content sites commonly charge a fixed price per click rather than use a bidding system. PPC "display" advertisements, also known as "banner" ads, are shown on web sites or search engine results with related content that have agreed to show ads.
In contrast to the generalized portal, which seeks to drive a high volume of traffic to one site, PPC implements the so-called affiliate model, which provides purchase opportunities wherever people may be surfing. It does this by offering financial incentives (in the form of a percentage of revenue) to affiliated partner sites. The affiliates provide purchase-point click-through to the merchant. It is a pay-for-performance model: If an affiliate does not generate sales, it represents no cost to the merchant. Variations include banner exchange, pay-per-click, and revenue sharing programs.
Websites that utilize PPC ads will display an advertisement when a keyword query matches an advertiser's keyword list, or when a content site displays relevant content. Such advertisements are called sponsored links or sponsored ads, and appear adjacent to, above, or beneath organic results on search engine results pages, or anywhere a web developer chooses on a content site.
The PPC advertising model is open to abuse through click fraud, although Google and others have implemented automated systems to guard against abusive clicks by competitors or corrupt web developers.
Cost per click, along with cost per impression and cost per order, are used to assess the cost effectiveness and profitability of internet marketing. Cost per click has an advantage over cost per impression in that it tells us something about how effective the advertising was. Clicks are a way to measure attention and interest. Inexpensive ads that few people click on will have a low cost per impression and a high cost per click. If the main purpose of an ad is to generate a click, then cost per click is the preferred metric. Once a certain number of web impressions are achieved, the quality and placement of the advertisement will affect clickthrough rates and the resulting cost per click.
Cost per click is calculated by dividing the advertising cost by the number of clicks generated by an advertisement. The basic formula is:
Cost per click ($) = Advertising cost ($) ÷ Ads clicked (#)
There are two primary models for determining cost per click: flat-rate and bid-based. In both cases the advertiser must consider the potential value of a click from a given source. This value is based on the type of individual the advertiser is expecting to receive as a visitor to his or her website, and what the advertiser can gain from that visit, usually revenue, both in the short term as well as in the long term. As with other forms of advertising targeting is key, and factors that often play into PPC campaigns include the target's interest (often defined by a search term they have entered into a search engine, or the content of a page that they are browsing), intent (e.g., to purchase or not), location (for geo targeting), and the day and time that they are browsing.
Flat-rate PPC :
In the flat-rate model, the advertiser and publisher agree upon a fixed amount that will be paid for each click. In many cases the publisher has a rate card that lists the cost per click (CPC) within different areas of their website or network. These various amounts are often related to the content on pages, with content that generally attracts more valuable visitors having a higher CPC than content that attracts less valuable visitors. However, in many cases advertisers can negotiate lower rates, especially when committing to a long-term or high-value contract.
The flat-rate model is particularly common to comparison shopping engines, which typically publish rate cards. However, these rates are sometimes minimal, and advertisers can pay more for greater visibility. These sites are usually neatly compartmentalized into product or service categories, allowing a high degree of targeting by advertisers. In many cases, the entire core content of these sites is paid ads.
The advertiser signs a contract that allows them to compete against other advertisers in a private auction hosted by a publisher or, more commonly, an advertising network. Each advertiser informs the host of the maximum amount that he or she is willing to pay for a given ad spot (often based on a keyword), usually using online tools to do so. The auction plays out in an automated fashion every time a visitor triggers the ad spot.
When the ad spot is part of a search engine results page (SERP), the automated auction takes place whenever a search for the keyword that is being bid upon occurs. All bids for the keyword that target the searcher's geo-location, the day and time of the search, etc. are then compared and the winner determined. In situations where there are multiple ad spots, a common occurrence on SERPs, there can be multiple winners whose positions on the page are influenced by the amount each has bid. The ad with the highest bid generally shows up first, though additional factors such as ad quality and relevance can sometimes come into play (see Quality Score).The predominant three match types for both Google and Bing are broad, exact and phrase. Google also offers the broad modifier match type.
In addition to ad spots on SERPs, the major advertising networks allow for contextual ads to be placed on the properties of 3rd-parties with whom they have partnered. These publishers sign up to host ads on behalf of the network. In return, they receive a portion of the ad revenue that the network generates, which can be anywhere from 50% to over 80% of the gross revenue paid by advertisers. These properties are often referred to as a content network and the ads on them as contextual ads because the ad spots are associated with keywords based on the context of the page on which they are found. In general, ads on content networks have a much lower click-through rate (CTR) and conversion rate (CR) than ads found on SERPs and consequently are less highly valued. Content network properties can include websites, newsletters, and e-mails.
Advertisers pay for each click they receive, with the actual amount paid based on the amount bid. It is common practice amongst auction hosts to charge a winning bidder just slightly more (e.g. one penny) than the next highest bidder or the actual amount bid, whichever is lower. This avoids situations where bidders are constantly adjusting their bids by very small amounts to see if they can still win the auction while paying just a little bit less per click.
To maximize success and achieve scale, automated bid management systems can be deployed. These systems can be used directly by the advertiser, though they are more commonly used by advertising agencies that offer PPC bid management as a service. These tools generally allow for bid management at scale, with thousands or even millions of PPC bids controlled by a highly automated system. The system generally sets each bid based on the goal that has been set for it, such as maximize profit, maximize traffic at breakeven, and so forth. The system is usually tied into the advertiser's website and fed the results of each click, which then allows it to set bids. The effectiveness of these systems is directly related to the quality and quantity of the performance data that they have to work with - low-traffic ads can lead to a scarcity of data problem that renders many bid management tools useless at worst, or inefficient at best.
- Cost Per Impression :
Cost Per Impression
Cost per impression, often abbreviated to CPI, is a term used in online advertising and marketing related to web traffic. It refers to the cost of internet marketing or email advertising campaigns where advertisers pay for every time an ad is displayed. Specifically, it is the cost to offer potential customers one opportunity to see the advertisement.
Cost per impression, along with cost per click and cost per order, is used to assess the cost effectiveness and profitability of online advertising. CPI is the closest online advertising strategy to those offered in other media such as television or print, which sell advertising based on estimated viewership or readership. CPI provides a comparable measure to contrast internet advertising with other media.
Impression versus Pageview
An impression is the display of an ad to a user while viewing a web page. A single web page may contain multiple ads. In such cases, a single pageview would result in one impression for each ad displayed. In order to count the impressions served as accurately as possible and prevent fraud, an ad server may exclude certain non-qualifying activities such as page-refreshes or other user actions from counting as impressions. When advertising rates are described as CPM or CPI, this is the amount paid for every thousand qualifying impressions served.
Cost per impression is derived from advertising cost and the number of impressions.
Cost per impression ($) = Advertising cost ($) ÷ Number of Impressions (#)
Cost per impression is often expressed as Cost per Thousand Impressions (CPM) to make the numbers easier to manage.
- Cost Per Order :
Cost Per Order
Cost per order, also called cost per purchase, is the cost of internet advertising divided by the number of orders. Cost per order, along with cost per impression and cost per click, is the starting point for assessing the effectiveness of a company's internet advertising and can be used for comparison across advertising media and vehicles and as an indicator of the profitability of a firm's internet marketing.
An internet retailer spent $24,000 on online advertising and generated 1.2 million impressions, which led to 20,000 clicks, with 1 in 10 clicks resulting in purchase.
- Cost per impression = $24,000 ÷ 1,200,000 impressions = $0.02
- Cost per click = $24,000 ÷ 20,000 clicks = $1.20
- Cost per order = $24,000 ÷ 2,000 purchases = $12.00
The purpose of the "cost per order" metric is to measure the advertising cost required to acquire an order. If the main purpose of the ad is to generate sales, cost per order is the preferred metric.
This is the cost to generate an order. The precise form of this cost depends on the industry and is complicated by product returns and multiple sales channels. The basic formula is:
Cost per order ($) = Advertising cost ($) / Orders placed (#)
- Click-Through Rate :
Click-through rate (CTR) is a way of measuring the success of an online advertising campaign for a particular website as well as the effectiveness of an email campaign by the number of users that clicked on a specific link.
The purpose of click-through rates is to capture customers' initial response to websites. Most commercial websites are designed to elicit some sort of action, whether it be to buy a book, read a news article, watch a music video, or search for a flight. People generally don't visit a website with the intention of viewing advertisements, just as people rarely watch TV with the purpose of consuming commercials.
Marketers want to know the reaction of the web visitor. Under current technology, it is nearly impossible to fully quantify the emotional reaction to the site and the effect of that site on the firm's brand. One piece of information that is easy to acquire, however, is the click-through rate. The click-through rate measures the proportion of visitors who initiated action with respect to an advertisement that redirected them to another page where they might purchase an item or learn more about a product or service. Here we have used "click their mouse" on the advertisement (or link) because this is the generally used term, although other interactions are possible.
The click-through rate is the number of times a click is made on the advertisement divided by the total impressions (the times an advertisement was served):
Click-through rate (%) = Click-throughs (#) / Impressions (#)
Online Advertising CTR
The click-through rate of an advertisement is defined as the number of clicks on an ad divided by the number of times the ad is shown (impressions), expressed as a percentage. For example, if a banner ad is delivered 100 times (100 impressions) and receives one click, then the click-through rate for the advertisement would be 1%.
Click-through rates for banner ads have fallen over time. When banner ads first started to appear, it was not uncommon to have rates above five percent. They have fallen since then, currently averaging closer to 0.2 or 0.3 percent. In most cases, a 2% click-through rate would be considered very successful, though the exact number is hotly debated and would vary depending on the situation. The average click-through rate of 3% in the 1990s declined to 2.4%-0.4% by 2002. Since advertisers typically pay more for a high click-through rate, getting many click-throughs with few purchases is undesirable to advertisers. Similarly, by selecting an appropriate advertising site with high affinity (e.g., a movie magazine for a movie advertisement), the same banner can achieve a substantially higher CTR. Though personalized ads, unusual formats, and more obtrusive ads typically result in higher click-through rates than standard banner ads, overly intrusive ads are often avoided by viewers.
An email click-through rate is defined as the number of recipients who clicked one or more links in an email and landed on the sender's website, blog, or other desired destination. More simply, email click-through rates represent the number of clicks that your email generated.
Email click-through rate, is expressed as a percentage, and calculated by dividing the number of click throughs by the number of messages delivered. Most email marketers use this metrics along with open rate, bounce rate and other metrics, to understand the effectiveness and success of their email campaign. In general there is no ideal click-through rate. This metric can vary based on the type of email sent, how frequently emails are sent, how the list of recipients is segmented, how relevant the content of the email is to the audience, and many other factors. Even time of day can affect click-through rate. Sunday appears to generate considerably higher click-through rates on average when compared to the rest of the week.
Every year studies and various types of research are conducted to track the overall effectiveness of click-through rates in email marketing.
- Cost Per Mille :
Cost Per Mille
"ECPM" redirects here. For the political party, see European Christian Political Movement. Cost per mille (CPM), also called cost - and cost per thousand (CPT) (in Latin mille means thousand), is a commonly used measurement in advertising. Radio, television, newspaper, magazine, out-of-home advertising, and online advertising can be purchased on the basis of showing the ad to one thousand viewers. It is used in marketing as a benchmark to calculate the relative cost of an advertising campaign or an ad message in a given medium.
The -cost per thousand advertising impressions- metric (CPM) is calculated by dividing the cost of an advertising placement by the number of impressions (expressed in thousands) that it generates. CPM is useful in comparing the relative efficiency of different advertising opportunities or media and in evaluating the costs of overall campaigns.
For media without countable views, CPM reflects the cost per 1000 estimated views of the ad. This traditional form of measuring advertising cost can also be used in tandem with performance based models such as percentage of sale, or cost per acquisition (CPA).
The purpose of the CPM metric is to compare costs of advertising campaigns within and across different media. A typical advertising campaign might try to reach potential consumers in multiple locations and through various media. The cost per thousand impressions (CPM) metric enables marketers to make cost comparisons between these media, both at the planning stage and during reviews of past campaigns.
Marketers calculate CPM by dividing advertising campaign costs by the number of impressions (or opportunities-to-see) that are delivered by each part of the campaign. Thus, CPM is the cost of a media campaign, relative to its success in generating impressions to see. As the impression counts are generally sizeable, marketers customarily work with the CPM impressions. Dividing by 1,000 is an industry standard.
To calculate CPM, marketers first state the results of a media campaign (gross impressions). Second, they divide that result into the relevant media cost:
Advertising Cost ($) / Impressions Generated
Total cost for running the ad is $15,000.
The total estimated audience is 2,400,000 people.
($15,000/2,400,000) = $0.00625
CPM is calculated as: $0.00625 x 1000 (meaning per thousand views) = $6.25
Note: Notice how the CPM is $6.25 and not $0.00625, this is because we are looking at cost per thousand.
In online advertising, if a website sells banner ads for a $20 CPM, that means it costs $20 to show the banner on 1000 page views. While the Super Bowl has the highest per-spot ad cost in the United States, it also has the most television viewers annually. Consequently, its CPM may be comparable to a less expensive spot aired during standard programming. Related Metrics and Concepts
Effective cost per mille
The Search Engine Marketing Professionals Organization (SEMPO) defines eCPM as: ::A hybrid Cost-per-Click (CPC) auction calculated by multiplying the CPC times the click-through rate (CTR), and multiplying that by one thousand. (Represented by: (CPC x CTR) x 1000 = eCPM.) This monetization model is used by Google to rank site-targeted CPM ads (in the Google content network) against keyword-targeted CPC ads (Google AdWords PPC) in their hybrid auction.
In internet marketing, effective cost per mille is used to measure the effectiveness of a publisher's inventory being sold (by the publisher) via a CPA, CPC, or Cost per time basis. In other words, the eCPM tells the publisher what they would have received if they sold the advertising inventory on a CPM basis (instead of a CPA, CPC, or Cost per time). This information can be used to compare revenue across channels that may have widely varying traffic—by figuring the earnings per thousand impressions.
- There are two banners: "Super Apps" and "Fantastic Apps."
- The publishers earn $1 per click.
- Both banners were published for the duration of one week.
- "Super Apps" was viewed by 2000 visitors from which 10 clicked on it.
- "Fantastic Apps" was viewed by 2000 visitors from which 50 clicked on it.
- This shows that:
- "Super Apps" has an eCPM of $5 ($10/2000 * 1000)
- "Fantastic Apps" has an eCPM of $25 ($50/2000 * 1000)
Cost per Point (CPP) or Cost per Rating Point (CPR or CPRP)
CPP is the cost of an advertising campaign, relative to the rating points delivered. In a manner similar to CPM, cost per point measures the cost per rating point for an advertising campaign by dividing the cost of the advertising by the rating points delivered.
The American Marketing Association defines cost-per-rating point (CPR or CPRP) as:
A method of comparing the cost effectiveness of two or more alternative media vehicles in radio or television. CPRP is computed by dividing the cost of the time unit or commercial by the rating of the media vehicle during that time period.
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