In this blog, I wrote on how to market an application, and how to monetize a service, and in order to proceed doing so, you need to become familiar with some marketing terms to get the best of any campaign to acquire new users.
The Most Used Marketing Terms
Cost per Thousand (CPM):
The most common model used for display advertising. It’s simply the cost of the ad divided by the number of impressions. So, if an ad costs $5 and gets 1,000 impressions, the CPM is $5.
Cost per Action (CPA):
The most common model used for social media advertising. It’s the cost of the ad divided by the number of actions (likes, comments, shares, etc). So, if an ad costs $5 and gets 100 actions, the CPA is $0.05. One more type of service where CPA is used is in VAS services, so if there is an app where you need to make an action like submitting an email and confirm it to be considered a subscriber, the whole process is an action, so CPA is the cost of a user completing all these actions.
Cost per Click (CPC):
The most common model used for search advertising. It’s the cost of the ad divided by the number of clicks. So, if an ad costs $5 and gets 10 clicks, the CPC is $0.50. This is mostly used if people want to advertise a Facebook post, a video, or a shopping ad.
Cost per Lead (CPL):
The amount of money that a company spends on marketing and advertising to generate one lead. This metric is important for businesses to track because it allows them to see how much they are spending to acquire new customers.
Cost per Install (CPI):
There are a number of factors that can impact the cost per install, including the type of app being advertised, the target audience, the advertising platforms being used, and the overall budget.
Cost per Sale (CPS):
The calculation of the cost of goods sold divided by the number of sales. This calculation helps businesses determine how much they are spending on goods and services sold. If a service is sold on a landing page where the user pays with his credit card or PayPal account, a sale will occur, CPS is the cost of advertising for a user who completed the purshace process.
One more advice
Your next step is to build a marketing campaign, to do so you need a marketing platform to setup sales funnels, news tellers and more. I recommend Systeme.io, the best free marketing tool in my opinion after years of experience, I have a review on it. You can consult an agency like Adstart Media to advertise your service, and feel free to comment below your questions and I will happily answer them.
