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Comparing four online direct response advertising options
by reviewing their pricing models: Flat Fee | CPM | CPC | CPL. We assume that your goal is maximum enrollment at the lowest cost/highest ROI.
1 Directory Listing for $2,500 Flat Fee
Advantages:
- Easy to budget for a flat fee
- Could end up being a low cost per lead
- Directory visitors are looking for education content
- May provide a graphical branding opportunity
Unknowns:
- # Enrollments = (# Impressions) x (CTR) x (Conversion %) x (Enrollment %)
- How many times was your listing viewed? (you’ll probably never know)
- How many times was it clicked on? (Links to your site should be tagged so you can track those visitors)
- How many leads did that traffic generate?
- How many enrollments did those leads convert into?
Work:
- Buy or build a tracking system
- Give copy to directory & approve your listings
- Build & test landing pages to capture leads
- Convert leads into enrollments
1,000,000 Banner Ad Impressions for $2.50 CPM
Advantages:
- Will provide a graphical branding opportunity
- Many publishers seek to sell inventory on CPM basis
Unknowns:
- # Enrollments = (1,000,000 Impressions) x (CTR) x (Conversion %) x (Enrollment %)
- How many clicks will you get? – have other creative ready to swap/test to optimize for this campaign
- How many leads did that traffic generate?
- How many enrollments did those leads convert into?
Work:
- Buy or build a tracking system
- Design ad copy & creative – several versions
- Send ads to publisher and setup tracking
- Build & test landing pages to capture leads
- Monitor and optimize campaign and make changes as needed (daily?)
- Convert leads into enrollments
1,000 Clicks at $2.50 CPC
Advantages:
- Number of clicks is guaranteed
- May provide a graphical branding opportunity
- Often tagged to keywords to provide contextual relevance
Unknowns:
- # Enrollments = (1,000 Clicks) x (Conversion %) x (Enrollment %)
- How many leads did that traffic generate?
- How many enrollments did those leads convert into?
Work:
- Buy or build a tracking system
- Design ad copy & creative – several versions
- Send ads to publisher and setup tracking
- Build & test landing pages to capture leads
- Monitor and optimize campaign and make changes as needed (daily?)
- Convert leads into enrollments
100 Leads at $25 CPL Advantages:
- Only pay when you get a lead
- Sometimes less work because of greater simplicity
- Directory visitors are looking for education content
- May provide a graphical branding opportunity
Unknowns:
- # Enrollments = (100 Leads) x (Enrollment %)
- How many enrollments did those leads convert into?
Work:
- Send program & school info to publisher for setup
- Monitor lead flow & communicate with publisher (monthly?)
- Convert leads into enrollments
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Pricing Models 
