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| payment models for display advertising |
how to pay:
payment models for display advertising
As well as a variety of mediums, there are also a number of different payment models for display advertising.
payment models for display advertising
As well as a variety of mediums, there are also a number of different payment models for display advertising.
CPI or CPM
CPI stands for Cost Per Impression. This means the advertiser pays each time the advert appears on the publisher’s page. The most common way of referring to this model is CPM or Cost Per Thousand impressions (the letter M is the Roman numeral for a thousand). This is how a campaign is normally priced when brand awareness or exposure is the primary goal.
CPC
CPC stands for Cost Per Click. This means that the advertiser only pays when their advert is clicked on by an interested party. CPC advertising is normally associated with paid search marketing, also called Pay Per Click (PPC) advertising. Banners can be priced this way when the aim is to drive traffic. It is also a payment method sometimes used in affiliate marketing, when the aim is to drive traffic to a new web site.
CPA
CPA refers to Cost Per Acquisition. This model means the advertiser only pays when an advert delivers an acquisition. Definitions of acquisitions vary from site to site and may be a user filling in a form, downloading a file or buying a product. CPA is the best way for an advertiser to pay because they only pay when the advertising has met its goal. For this reason it is also the worst type for the publisher as they are only rewarded if the advertising is successful. The publisher has to rely on the conversion rate of the advertiser’s web site, something which the publisher cannot control. The CPA model is not commonly used for banner advertising and is generally associated with affiliate marketing.
flat rate
Sometimes, owners of lower-traffic sites choose to sell banner space at a flat rate i.e. at a fixed cost per month regardless of the amount of traffic or impressions. This would appeal to a media buyer who may be testing an online campaign that targets niche markets.
cost per engagement
This is an emerging technology in which advertisers pay for the rollover adverts, placed in videos or applications (such as Facebook applications), based on the interactions with that advert. “Engagement” is generally defined as a user-initiated rollover, or mouseover, action that results in a sustained advert expansion. Once expanded, an advert may contain a video, game, or other rich content. It happens without taking an Internet user away from her preferred web page, and marketers only pay when an individual completes an action.
CPM favours the publisher, while CPA favours the advertiser. Sometimes, a hybrid of the two payment models is pursued.
Typically, high traffic, broad audience web sites will offer CPM advertising. Examples include web portals such as www.yahoo.com or news sites like www.news24.com.
Niche web sites with a targeted audience are more likely to offer CPA advertising to advertisers with an appropriate product. These can also fall under the umbrella of affiliate marketing.
Types of advertising can be seen on a scale from more intrusive (and thus potentially annoying to the consumer) to less intrusive. In the same way, payment models can be scaled to those that favour the publisher to those that favour the advertiser.
When planning a campaign, it is important to know how the advertising will be paid for and what kinds of advertising are offered by publishers. A lot of this can be solved by using a company that specialises in advert serving, media planning and media buying.
CPI stands for Cost Per Impression. This means the advertiser pays each time the advert appears on the publisher’s page. The most common way of referring to this model is CPM or Cost Per Thousand impressions (the letter M is the Roman numeral for a thousand). This is how a campaign is normally priced when brand awareness or exposure is the primary goal.
CPC
CPC stands for Cost Per Click. This means that the advertiser only pays when their advert is clicked on by an interested party. CPC advertising is normally associated with paid search marketing, also called Pay Per Click (PPC) advertising. Banners can be priced this way when the aim is to drive traffic. It is also a payment method sometimes used in affiliate marketing, when the aim is to drive traffic to a new web site.
CPA
CPA refers to Cost Per Acquisition. This model means the advertiser only pays when an advert delivers an acquisition. Definitions of acquisitions vary from site to site and may be a user filling in a form, downloading a file or buying a product. CPA is the best way for an advertiser to pay because they only pay when the advertising has met its goal. For this reason it is also the worst type for the publisher as they are only rewarded if the advertising is successful. The publisher has to rely on the conversion rate of the advertiser’s web site, something which the publisher cannot control. The CPA model is not commonly used for banner advertising and is generally associated with affiliate marketing.
flat rate
Sometimes, owners of lower-traffic sites choose to sell banner space at a flat rate i.e. at a fixed cost per month regardless of the amount of traffic or impressions. This would appeal to a media buyer who may be testing an online campaign that targets niche markets.
cost per engagement
This is an emerging technology in which advertisers pay for the rollover adverts, placed in videos or applications (such as Facebook applications), based on the interactions with that advert. “Engagement” is generally defined as a user-initiated rollover, or mouseover, action that results in a sustained advert expansion. Once expanded, an advert may contain a video, game, or other rich content. It happens without taking an Internet user away from her preferred web page, and marketers only pay when an individual completes an action.
CPM favours the publisher, while CPA favours the advertiser. Sometimes, a hybrid of the two payment models is pursued.
Typically, high traffic, broad audience web sites will offer CPM advertising. Examples include web portals such as www.yahoo.com or news sites like www.news24.com.
Niche web sites with a targeted audience are more likely to offer CPA advertising to advertisers with an appropriate product. These can also fall under the umbrella of affiliate marketing.
Types of advertising can be seen on a scale from more intrusive (and thus potentially annoying to the consumer) to less intrusive. In the same way, payment models can be scaled to those that favour the publisher to those that favour the advertiser.
When planning a campaign, it is important to know how the advertising will be paid for and what kinds of advertising are offered by publishers. A lot of this can be solved by using a company that specialises in advert serving, media planning and media buying.
