BTEC 13 – Unit 17 p4 and m2
Jack Collins
P4 – Outline the different compensation models used in digital marketing
M2 – Analyse the different digital strategies and compensation models used
to create brand recognition and brand loyalty
Return on investment compensation models
• Cost per click (CPC).
Cost per click (CPC) for digital marketing is a form of online advertisement, which is the amount of
money the publisher would charge an advertiser every time an individual click on their ad, not each
time an ad is shown. For example, a website publisher can charge an advertiser £1 for every click
that a certain add gets. This can be quite useful to the company as there is a clear relation of how
much the company spends for advertising and how well the advertising gets for its products/service.
Meaning the more views, the more money that the advertiser spends, the more views that the
advertiser spends. Although, for Air BNB this isn’t always beneficial for their company as costs per
click can differ in different countries, for example, Adespresso.com analyses that Facebook costs per
click can be quite expensive in different countries. For example-
Meaning that Air BNB would need to analyse how many people who clicks on adds that becomes
customers. If it is a small percentage then cost per clicks would not be beneficial for Air BNB for
online advertising. As the company could end up spending a huge amount of money for people
clicking on their Ad many times, but they don’t become customers. Showing that cost per clicks
might not be useful for their company.
Jack Collins
P4 – Outline the different compensation models used in digital marketing
M2 – Analyse the different digital strategies and compensation models used
to create brand recognition and brand loyalty
Return on investment compensation models
• Cost per click (CPC).
Cost per click (CPC) for digital marketing is a form of online advertisement, which is the amount of
money the publisher would charge an advertiser every time an individual click on their ad, not each
time an ad is shown. For example, a website publisher can charge an advertiser £1 for every click
that a certain add gets. This can be quite useful to the company as there is a clear relation of how
much the company spends for advertising and how well the advertising gets for its products/service.
Meaning the more views, the more money that the advertiser spends, the more views that the
advertiser spends. Although, for Air BNB this isn’t always beneficial for their company as costs per
click can differ in different countries, for example, Adespresso.com analyses that Facebook costs per
click can be quite expensive in different countries. For example-
Meaning that Air BNB would need to analyse how many people who clicks on adds that becomes
customers. If it is a small percentage then cost per clicks would not be beneficial for Air BNB for
online advertising. As the company could end up spending a huge amount of money for people
clicking on their Ad many times, but they don’t become customers. Showing that cost per clicks
might not be useful for their company.
