How is the cost of contextual advertising formed?

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There is no fixed price for contextual advertising on the Internet. The cost depends on the topic, seasonality, level of competition and many other factors.

The CPC model is the main scheme by which systems form the price of ads: the advertiser pays for clicks on his ads on his site.

Much more rarely used scheme CPA (pay per lead) and CPM (pay per impression ad 1000 users).

The cost of contextual advertising depends on the rates at the auctions, the quality of advertising content and predictability of clickability.

Auction
The cost per click on the CPC-model is formed based on the results of an automatic auction. Advertisers who generate ads for the same keywords assign their bids per click. Each time a user enters this query, the system launches an auction and selects which ads to display to the user.

Despite the veil of secrecy, the quality factor unambiguously affects the price of the ad campaign. What can you do to improve it:

fill in all fields;
add extensions – quick links, prices, videos, promotions;
use keywords;
disclose the features of the ATP in the ad;
lead to the relevant page;
analyze the effectiveness, quickly make changes.

Google’s analogue is the Quality Score (QS), a measure of the quality of ads and landing pages. Direct factors of influence on the QS are also about the same:

Condition, relevance of the landing page;
content relevance;
history, forecast CTR.

There are slight differences in indirect factors: for example, QS is influenced by effectiveness according to the specified geolocation, as well as statistics by device type. But the general recommendations for increasing QS in Google Ads are the same as for improving ad quality in Direct.

Click-through-rate (CTR) prediction and history
CTR (Click-Trough Rate) is the ratio of clicks to impressions. This is one of the most important parameters.

For pricing in Directa, a CTR forecast is calculated automatically based on

  • accumulated clickability data;
  • the use of embedded and keywords in the ad text;
  • the behavior of users from different regions;
  • seasonal factor of demand;
  • commercial factors of the site – how much the user will trust the site;
  • the use of add-ons – quick links, refinements.

Google in predicting clickability also takes into account previous data on CTR and ad quality.