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Calculating CPM vs CPC (Great for Facebook CPM ads!)
Posted by JasperP on May 27th, 2009
On facebook, you have the option of choosing CPC or CPM for your ads and you should always test your text ads with CPC first. But when do you turn them into CPM ads?
To answer this question, you need to collect some data from your ads and determine the maximum CPM you can pay based on the clickthrough rates and CPC for your ads.
maximum CPM = CPC * CTR * 1000
For example, if you are paying 0.30 CPC and getting a CTR of 0.25% then your maximum CPM that you should pay should be:
maximum CPM = $0.30 * 0.0025 * 1000 = $0.75
Now, I like to think in terms of CPC, so I can change the CPMs to see the different CPC costs I would be paying. The magic formula for that is:
CPC = [ CPM / (CTR * 1000) ]
Using the same example as above with the 0.25% CTR, I can plug in different CPM of $0.70, $0.50, $0.30 to see the different CPC costs:
CPC = [ 0.70 / (0.0025 * 1000) ] = $0.28
CPC = [ 0.50 / (0.0025 * 1000) ] = $0.20
CPC = [ 0.30 / (0.0025 * 1000) ] = $0.12
CPC = [ 0.20 / (0.0025 * 1000) ] = $0.08
CPC = [ 0.10 / (0.0025 * 1000) ] = $0.04
So you can see the potential of using CPM to lower your costs. By writing compelling ad copy and images that grab attention, you can lower your CPC costs dramatically.
Related Posts
Affiliate Marketing Water Cooler Talk
Posted by JasperP on May 22nd, 2009
[12:51 PM] Jasper Pangilinan: have you tried international?
[12:51 PM] XXXXXX: little bit
[12:51 PM] XXXXXX: in my experience, the gays in the US convert better
[12:52 PM] XXXXXX: but boobs are an international language
[12:54 PM] Jasper Pangilinan: haha
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Advertising Space Open on NerdyAffiliate.com
Posted by JasperP on May 14th, 2009
As you have noticed, there are spaces open for advertising on this site. I’ve gotten a couple of requests asking if they could put a banner on my site and I wasn’t set up for it until now.
If you’re looking to advertise on this site, please submit all requests to: http://nerdyaffiliate.com/advertise
All ads and creatives are subject to approval before being placed on this site.
Please send all general inquiries to JasperP [at] nerdyaffiliate.com
Related Posts
Another Weight Loss Challenge?
Posted by JasperP on May 10th, 2009
So I’ve decided to start working out again. I’m going to start hitting up the gym 3 times a week. I started playing basketball again as well so I want to be strong enough to be able to push people around on the court since I’m not as fast as I was before.
A couple of bloggers like Jon Volk, Tyler Cruz and James Seligman are blogging about weight loss, so I figured I post one too.
Is this going to be another Weight Loss challenge? probably not. Since, I’m bulking up and trying to pack on some muscle, I’m most likely going to be gaining weight. lol
Anyway, I took some pictures and wrote down my starting weight, body composition and measurements. I’ll think about posting pictures later on.
5/10/2009
Starting Weight: 198 lbs @ 23.3% BF
Biceps: 13.75″
Forearm: 11.5″
Chest: 40″
Waist: 38.5″
Hips: 41.25″
Thighs: 23.5″
Calves: 16″
Related Posts
Prosper202 Mod: LP Clickthrough for Text Ads/Keywords
Posted by JasperP on May 7th, 2009
**[EDIT: 7/6/09] Here’s an update to the code: Prosper202 LP CTR Version 2 **
Since Prosper202 went open-source, I decided to poke around in the source code. One feature that I wanted was to be able to know which keywords and text ads clicked through from the landing page to the merchant’s offer. Before that, I was using Google Analytics and looking at the bounce rate to determine the effectiveness of a keyword.
Now that Prosper202 is open-source, I created my own modifications for it. If you notice at the top, I added links for “Keywords LP CTR” and “Text Ad LP CTR”.
The next thing I did was I added two columns, one for the number of clickthroughs and one for the clickthrough percentage of clicks into the LP and clicks out to the offer.
Here’s the download for it. Take a look at the source code, I put a bunch of comments so that anyone can understand the changes that I did.
Here are the instructions from the included txt file:
1.) Make a backup of top.php in the tracking202/_config folder
2.) Copy top.php to the tracking202/_config folder
3.) Make a backup of index.php in the tracking202/analyze folder
4.) Copy index.php to the tracking202/analyze folder
5.) Copy contents of tracking202/ajax and tracking202/analyze to the corresponding folders (no backups are required since it doesn't overwrite anything)
6.) Make sure to add the tables below using the SQL tab in PHPMYADMIN in your webhost.
// Create Table: 202_sort_keywords_lpctr
CREATE TABLE IF NOT EXISTS `202_sort_keywords_lpctr` (
`sort_keyword_id` int(10) unsigned NOT NULL auto_increment,
`user_id` mediumint(8) unsigned NOT NULL,
`keyword_id` bigint(20) unsigned NOT NULL,
`sort_keyword_clicks` mediumint(8) unsigned NOT NULL,
`sort_keyword_click_throughs` mediumint(8) unsigned NOT NULL,
`sort_keyword_ctr` decimal(10,2) NOT NULL,
`sort_keyword_leads` mediumint(8) unsigned NOT NULL,
`sort_keyword_su_ratio` decimal(10,2) NOT NULL,
`sort_keyword_payout` decimal(6,2) NOT NULL,
`sort_keyword_epc` decimal(10,2) NOT NULL,
`sort_keyword_avg_cpc` decimal(7,5) NOT NULL,
`sort_keyword_income` decimal(10,2) NOT NULL,
`sort_keyword_cost` decimal(13,5) NOT NULL,
`sort_keyword_net` decimal(13,5) NOT NULL,
`sort_keyword_roi` decimal(10,2) NOT NULL,
PRIMARY KEY (`sort_keyword_id`),
KEY `user_id` (`user_id`),
KEY `keyword_id` (`keyword_id`),
KEY `sort_keyword_clicks` (`sort_keyword_clicks`)
) ENGINE=MyISAM AUTO_INCREMENT=1 ;
// Create Table: 202_sort_text_ads_lpctr
CREATE TABLE IF NOT EXISTS `202_sort_text_ads_lpctr` (
`sort_text_ad_id` int(10) unsigned NOT NULL auto_increment,
`user_id` mediumint(8) unsigned NOT NULL,
`text_ad_id` mediumint(8) unsigned NOT NULL,
`sort_text_ad_clicks` mediumint(8) unsigned NOT NULL,
`sort_text_ad_click_throughs` mediumint(8) unsigned NOT NULL,
`sort_text_ad_ctr` decimal(10,2) NOT NULL,
`sort_text_ad_leads` mediumint(8) unsigned NOT NULL,
`sort_text_ad_su_ratio` decimal(10,2) NOT NULL,
`sort_text_ad_payout` decimal(6,2) NOT NULL,
`sort_text_ad_epc` decimal(10,2) NOT NULL,
`sort_text_ad_avg_cpc` decimal(7,5) NOT NULL,
`sort_text_ad_income` decimal(10,2) NOT NULL,
`sort_text_ad_cost` decimal(13,5) NOT NULL,
`sort_text_ad_net` decimal(13,5) NOT NULL,
`sort_text_ad_roi` decimal(10,2) NOT NULL,
PRIMARY KEY (`sort_text_ad_id`),
KEY `user_id` (`user_id`),
KEY `keyword_id` (`text_ad_id`),
KEY `sort_keyword_clicks` (`sort_text_ad_clicks`),
KEY `sort_keyword_leads` (`sort_text_ad_leads`),
KEY `sort_keyword_signup_ratio` (`sort_text_ad_su_ratio`),
KEY `sort_keyword_payout` (`sort_text_ad_payout`),
KEY `sort_keyword_epc` (`sort_text_ad_epc`),
KEY `sort_keyword_cpc` (`sort_text_ad_avg_cpc`),
KEY `sort_keyword_income` (`sort_text_ad_income`),
KEY `sort_keyword_cost` (`sort_text_ad_cost`),
KEY `sort_keyword_net` (`sort_text_ad_net`),
KEY `sort_keyword_roi` (`sort_text_ad_roi`)
) ENGINE=MyISAM AUTO_INCREMENT=1 ;


