Revenue Models For Online Ads
There are so many types of revenue models for online ads which are in use. However, the most common manner which online ads are being purchased are- Cost Per Mille (CPM), Cost Per Click (CPC), and Cost Per Action (CPA). Presented below is the review discussing some of the main revenue models for online advertisement. Let us take a look and know more about these revenue models for online ads as it would add to out online advertising knowledgebase.
CPM (Cost Per Mille) - It is also known as the Cost Per Thousand (CPT) online ads revenue model. In this type of model, the advertiser has to make payments for the exposure of his ads to particular types of audiences. The term per mille in the CPM online ads revenue model stands for per thousand impressions of the ad or loads of an advertisement. Sometimes, some of the ad impressions might left uncounted as in case of a reload or internal user action.
CPC (Cost Per Click) - One of the most common revenue models for online advertisement is CPC which is also known as Pay Per Click (PPC). Under this Pay per click online ads revenue model, the advertisers have to make payment every time whenever there is a click by the user on his ad or listing and user gets redirected to the website for which online campaign has been running.
CPA (Cost Per Action) - It is also among the commonly used revenue models for online ads. It is also known as the Cost Per Acquisition revenue model. It has advertising campaign which is performance based and is mostly found in the affiliate marketing sector of the business. Under this online ads revenue model, all the risk of running the ads campaign lies with the publisher and the advertiser has to make payments for only those users who have completed the desired action- be it a purchase or sign-up at the site. It is termed as the best practice to pay for banner advertisements and the worst type of rate to charge.
Some other common revenue models for online ads are as defined below:
CPV (Cost Per Visitor)- In this internet advertising revenue model, the advertisers has to make payments when the targeted visitor visits the advertisers website.
CPV (Cost Per View)- In this online ads revenue model, the advertiser has to pay for view on his site or ad by a unique user or website.