start websites and blogs for numerous reasons — some of which are
financially based. With so many options for generating revenue from a
website, publishers may wonder which advertising campaigns are most profitable and which ones to avoid.
There are benefits and disadvantages to every advertising model.
CPM advertising is one of the most common types of performance marketing – especially for websites that have established traffic patterns. CPM advertising
stands for cost per thousand, meaning advertisers pay website owners a
predetermined fee for every 1,000 ad views, regardless of how well a
particular ad performs.
is preferred by advertisers, as well as Web publishers, because of the
security in knowing how much ad revenue will be spent and received.
the downside to CPM is that advertisers may overpay for a poorly
performing ad, and similarly, publishers may be inadequately compensated
for an especially relevant ad. CPM fees are usually negotiated
according to the nature of the ad, as well as the website that will host
it. Most CPM ad campaigns are under contract for a specific period of
time and mediated by a CPM advertising brokerage.
refers to cost per click, meaning publishers receive ad revenue each
time a web visitor clicks on a particular ad. CPC is especially popular
with blogs and advertisers just starting out, although CPC can be found
on veteran websites as well.
of the most popular CPC platforms is the Google Adwords platform, which
uses tracking cookies and contextual information within each website to
determine which ads to display to visitors.
CPC is also known as PPC, or pay per click,
among web publishers and advertisers. Many web publishers prefer CPC
because of its ease of use and the unlimited potential for ad revenue.
However, CPC can also be fickle in nature.
revenue per ad click may vary by season and the keywords used to
generate the ads. CPC is a less reliable revenue model for publishers
who need more financial stability.
CPA stands for cost per action. In other words, advertisers pay a fee only after a website visitor views an ad, clicks on it and completes a specified action, such as making a purchase.
the advertiser will then pay the publisher a percentage of the sale,
which is generally much more than would have been paid for the web
visitor’s click under a CPC marketing platform.
is beneficial to advertisers, because it reduces click fraud and
ensures the advertiser only pays for truly profitable conversions.
Similarly, many publishers prefer CPA, because commissions can rise
significantly, especially when the advertiser’s products are recommended
within blog posts or an email subscriber list.
On the other hand, the wrong CPA campaign could prove useless if website visitors are not compelled to make purchases.
is important to note, however, that many CPA programs have cooking
tracking policies that guarantee publishers a right to commissions on
return visits for a predetermined period of time, such as 30 or 60 days.
CPL, or cost per lead, is an advertising model that pays the host of the advertisement each time a website visitor completes a lead form. A lead is often an inquiry requesting more information via mail, phone call or email.
campaigns usually pay a predetermined amount of money for each lead,
and that payout is typically much higher than the price of a CPC
click-through. CPL is beneficial to advertisers, because advertisers
never pay for intangible results.
campaigns are especially popular among advertisers that provide client
consultations, such as lawyers, lenders and financial advisors.
are paying only for traffic interested in a specific product or
service, and although it may not mean immediate income, future
conversions should provide a return on the CPL investment.
Those hosting the advertisements like the CPL advertising model because advertisers must pay regardless of whether a lead converts into a sale.
performance of a particular type of ad campaign will vary from website.
What works for one publisher or advertiser may not be profitable for
another. That is why testing and tweaking are important to ensuring your
website is monetized according to its maximum potential.