Digital Advertising in India
How Online Ads Are Bought: CPM, CPC and Auctions
Advertisers pay per thousand views, per click or per action, and prices are set by real-time auctions.
Money changes hands in milliseconds.
CPM
Cost per thousand impressions, common for awareness campaigns.
CPC
Cost per click, common in search advertising.
Auctions
When a page loads, an instant auction chooses which ad appears.
Conversion
Advertisers measure sales or sign-ups that result from ads.
A search auction
Several firms bid for the keyword 'running shoes', and the winner's ad appears at the top.
Assuming higher bids always win
Quality and relevance also matter.
Key takeaways
- CPM is per thousand views.
- CPC is per click.
- Auctions set prices.
- Conversions measure results.
No recording for this one yet - EconReader can read it aloud for you.