COMM 101 Lecture Notes - Lecture 14: Pay Per Click, Roman Numerals, Psychographic
13 Jun 2018
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Advertising topics/definitions:
• Ads agencies have traditionally operated on what’s called “open contract”—
o agency paid a flat percentage of the media buy, usually 15%—so, for
example, if agency buys $1 million worth of space for Budweiser, it would
get $150,000
▪ agencies try to buy space/time in bulk and then charge the client a
bit more than they paid
• Rates they pay are called CPM: Cost per thousand (the M based on the Roman
Numeral for 1000)
o the effectiveness of an ad placement is gauged by the cost of reaching
1000 audience members
▪ for example, if a newspaper ad costs $20,000 and is read by
1,000,000 people, it has a CPM of $20
• If a website publisher charges $2.00 CPM, that means an advertiser must pay
$2.00 for every 1,000 impressions of its ad.
• Advertisers frequently measure the success of a CPM campaign by its click-
through rate (CTR), the ratio of the number of times the ad is clicked compared to
the total number of ad impressions.
• Cost Per Click (CPC) where the advertiser pays each time a website visitor
actually clicks on the ad, and cost per acquisition (CPA)
o where the advertiser only pays each time a website visitor makes a
purchase that can be directly traced to having clicked on that ad
• Advertising draws from market research about audiences, includes polling, focus
groups, mall intercept interviewers, and now the matching of information gleaned
from on line activity, data brokers
• Audience research—psychographics—info that links demographic categories to
personality characteristics of an audience—
o Psychographic segmentation allows advertisers to divide markets up by
o behavior, interests, lifestyle choices, and values
o whether people, e.g., materialistic or confident, want to
lead or follow
▪ People divided into segments like:urban
trendsetters, upscale suburban, middle America,
empty nesters
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Numeral for 1000) the effectiveness of an ad placement is gauged by the cost of reaching. 1000 audience members for example, if a newspaper ad costs ,000 and is read by. 1,000,000 people, it has a cpm of . If a website publisher charges . 00 cpm, that means an advertiser must pay. Product-information format--some heavy on text, illustration used primarily to visualize packaging and product; others use images to demonstrate the utilities of the product in new ways. Product-image format--product is given special qualities by means of a symbolic relationship it has to more abstract and less pragmatic domain; product becomes embedded in a symbolic context. Personalized format--direct relationship between the product and the human personality-- involves social admiration, pride of ownership, anxiety about lack of use, satisfaction in consumption. Lifestyle format--balances product, person and setting so product is seen within regular flow of life and everyday events--the setting serves as site for important interpretations.
