Internet advertising is becoming more and more popular. Today, if you want to have a successful business, then start a website or account in social network and promote your product with internet ads. But if a beginning businessman will ever decide to do it, he needs to know about the technology of advertising. And of the main thing and, by a coincidence, today’s topic, is ad models. We’ll talk about CPC, PPC, CPM, CPI, CPA and CPL, about their advantages and disadvantages and decide, which model or models are the best for hodiernal marketing.
So, what are those models? These are special algorithms that show the efficiency of ad display and set up the prices for the placing of an ad.
PPC (Pay per click)
This system is pretty much similar to CPC but here you give money for simple clicks, without a guarantee that user will be your new client. The amount of money for one click depends on many targeting options and, of course, publisher’s price list, his website popularity etc. The main advantage of this system is money that you give for clicks only. Besides, many users see your advertising without clicking on it too and it creates even higher recognizability. But be ready to have a solid budget for that kind of model. And there can be click fraud that can make you pay for non-existing clicks. For publisher the risk isn’t very high because in spite of PPC’s unpredictability he can collect user’s information and data.
CPC (Cost per click)
If PPC is a system that creates the price, then CPC is the sum of money that has to be paid.
CPM (Cost per millennium)
CPM pays for every thousand views of the ad to website’s visitors. CPM doesn’t require a high clickability on the ad because the only thing important here is views. This type of price modeling is successful only to high up your brand’s popularity. For the publishers, this model is the most profitable because of its predictability. If you are a beginner and want to have a good result and predictable price – use CPM. Main disadvantage of this system is that if one user will see your ad twice or more, he will be counted every time as a different viewer. And, of course, view frauds.
CPA(Cost per action)
Cost per action means that user has to perform one specific action like installation, click, signing up. This method is really safe for the advertiser because he pays only for a real client or useful effect. The best part of it is that there is a low level of frauds, unlike previous methods. For publisher this is the most unpredictable method of payment.
CPI(Cost per installation)
CPI is CPA’s offshoot where the price is made from every committed installation of an app, game. This is the most expensive way to pay for advertisement – definitely a disadvantage for advertiser. But, you pay only for committed action, just like with CPA, which make this model worthy. For publisher, this is the first time on this list where frauds are harming them, not advertisers, by deleting cookies. The main advantage is the price.
CPL(Cost per lead)
Price for the registration, signing up. In most of the cases, used by online casinos or different services. The main advantages are quite similar to CPI’s for both advertisers and publishers.
So, which model is the best? Depends on the type of your business. But as the ultimate method I would choose CPM because of the mutual profit for publishers and advertisers. The safest models for the advertiser are CPI are CPL also, the most expensive. For publisher, the safest model is CPM. Which one to use is only for you to decide. Choose wisely.