In the world of marketing, especially on the Sweply platform, you'll come across several terms related to important performance measures. Here, we'll simplify these terms, explain the calculations, and elaborate on their meanings:
1. CPM (Cost Per Thousand Impressions) - CPM is the cost that an advertiser pays for a thousand views of their ad. So, if you're evaluating your spending and see CPM, it's the money spent for every 1000 people who saw your ad.
Consider a $2 CPM for a Snapchat ad launched via Sweply; it means that for 1000 people who saw your ad, the cost was $2. In simpler words, for each person who viewed your ad, the cost was $0.002.
2. CPC (Cost Per Click) - CPC is the expense an advertiser bears for each click a consumer makes on a digital ad. This measurement is largely used in platforms like Google AdWords and Facebook Ads.
CPC can easily be calculated by dividing the total expense of your clicks by the total number of clicks.
For illustration, imagine you collaborated with Sweply on an ad campaign. If you spent $200 and received 100 clicks, your CPC would be $2, meaning each click cost you $2.
3. CPV (Cost Per View) - CPV is a unique metric to video advertising that implies advertisers only pay when a viewer watches a set portion of their video. Different platforms may have different definitions of a "view". At Sweply, we consider a "view" as when a viewer watches 30 seconds of your video ad or interacts with it.
You can calculate CPV by dividing the total cost of an ad campaign by the total number of views.
For example, if your ad campaign with Sweply cost overall $100 and was viewed 500 times, your CPV would be $0.20, hence each view costs you $0.20.
4. CPA (Cost per Acquisition) - CPA relates to the average cost an advertiser pays for a specified acquisition. An acquisition could range from a purchase, a form submission, to a fixed subscription period. CPA is calculated by dividing the total cost of an ad campaign by the total number of acquisitions.
For instance, if you spent $500 on an ad campaign on Sweply and acquired 50 new customers, your CPA would be $10.
5. CPI (Cost per Install) - Predominantly present in mobile advertising, CPI is the cost an advertiser pays each time a user installs their app post seeing their ad. The calculation is straightforward: divide the total campaign cost by the total number of installs.
Let's say you spent $1000 on advertising your new mobile app on Sweply and received 500 downloads; your CPI would be $2.
Understanding these basics will provide you with a strong base to strategize and measure the success of your digital marketing campaigns.
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