Ever wanted a form of advertising where you don’t have to pay upfront? What if you are not guaranteed certain results and end up paying way too much? FEAR NOT.
Introducing performance based advertising, where you end up paying based on the results you achieve. This is more effective because you know if what you are putting out is attracting job seekers or not.
What exactly is performance based advertising, how does it work and what are the statistics? Recruiters give us the answers:
How does it work?
You ONLY pay a fee when a job seeker has actually viewed or applied to your job. There are 2 performance based pricing models.
One being Pay Per Click = charged for each click your job receives.
The other being Pay Per Apply = charged for each applicant your job receives.
- Zip Alerts
- Jobs 2 Careers
- Simply Hired
- Diversity Jobs
- Career Jet
It is important to understand the metrics and language used in performance based advertising:
- Bid: The amount you agree to pay for each click to a given job post.
- Clicks/Views: The number of people who click on a link to your job.
- Spend: The amount of money you pay based on the number of clicks or applies your job receives.
- Applications: The number of people who apply to a given job (submit the required information).
- Cost Per Click (CPC): The cost of getting one person to click on one of your jobs. [Calculation: (Spend on a given job) / Clicks = CPC]
- Conversion Rate: The percentage of people who click on your jobs that complete an application. [Calculation: Applications/ Clicks = CR%]
- Cost Per Hire: The cost of hiring one person for your job opening [Calculation: Spend (on a given job) / Hires = CPH]
Read more about metrics and how performance based advertising works below by Recruitics: