AIDA Model, CPM, CPC, CPA, and Advertising Channels

1. AIDA Model:

The AIDA model represents the progressive stages a potential customer goes through, from Attention to Interest, Desire, and finally, Action. It helps evaluate how an advertisement performs at each stage, measuring the extent to which it grabs attention, generates interest, stimulates desire, and influences action.

In the traditional advertising channels like TV, newspapers, magazines, and billboards, the focus is mainly on “Attention.” However, in the internet era, you can target audiences not only at the “Attention” level but also at the “Interest,” “Desire,” and even “Action” levels, thanks to the availability of user behavior data.

2. CPM, CPC, CPA:

CPM (Cost Per Mille): This model involves paying for ad space based on the number of impressions (thousands of views). It is commonly used for display ads and provides clear visibility on how many people see the ad. However, it doesn’t guarantee subsequent actions, resulting in potential ad wastage.
CPC (Cost Per Click): In this model, advertisers pay for each click on their ad. It is more precise than CPM, as a click indicates at least some level of interest from the user. Platforms like Google Ads often use CPC for contextually relevant keyword ads.
CPA (Cost Per Action): This model focuses on the actual outcomes of advertising, where advertisers pay based on specific actions taken by users. Examples include:
CPD (Cost Per Download): Charging for each app download.
CPI (Cost Per Install): Paying for each app activation.
CPS (Cost Per Sale): Charging for completed purchases or sales revenue.

3. Advertising Channels:

Display Ads:
Description: Banner ads on websites or mobile apps, including banners and splash screens in apps.
Payment Model: Usually CPM.
Characteristics: High visibility, significant traffic, strong brand impact.
Native Ads:
Description: Ads seamlessly integrated into platforms, such as sponsored posts on social media or native feeds.
Payment Model: Can be CPM, CPC, or CPA.
Characteristics: Immersive, user-initiated, effective with engaging and relevant content.
Search Ads:
Description: Ads displayed in search engine results based on keywords.
Payment Model: Primarily CPC.
Characteristics: Highly targeted, effective for capturing intent.
Choosing between CPM, CPC, and CPA depends on the brand, product, and advertising goals. Most major advertising platforms in China support these three models, offering flexibility based on specific needs.