The more targeted an advertisement is, the higher the cost. However, the targeting can also be very efficient, as it hits only the exact right audience. It’s important to understand web marketing pricing language as it relates to online advertising. There are several types of online advertising options available online. The sky is really the limit and it’s come to a point where we are only limited by our imagination…err credit haha!
Anyway, I’ve outlined 5 different advertising strategies you may or may not be using yet but it’s not even April of 2016 so you still have time to research and strategize around these other opportunities to help scale and grow your campaigns.
Cost Per Thousand (CPM) – This pricing model is based on the cost per thousand impressions. Impressions are defined as how many times an ad is viewed. This pricing metric is similar to traditional advertising like radio and television. Online advertising purchased on a CPM bases is more likely to be guaranteed delivery. Think of impressions as views or “eyeballs” and new ads appear, that is considered an impression.
Cost Per Click (CPC) – This model is based on the cost or cost equivalent paid per click. A Click is defined as a user who clicks on an online advertisement as a way to the advertiser’s destination. Paid search ads are most commonly sold on a cost per click basis and referred to as pay per click PPC. When ads are purchased on a per click basis, there is no charge for impressions, just clicks.
Cost Per Action or Cost Per Acquisition (CPA) – Payment by advertisers is made only if qualified actions such as leads, sales or registrations occur. Ads are also sold on a CPL (cost per lead) basis. Affiliate marketing is run on a CPA basis and has a distinct set of rules, norms and management responsibilities. CPA Deals are very likely to use co-registration deals as a method to initiate actions.
Co-Registration – Co-Registration is an agreement in which a company hosts a registration form where multiple other companies can collect new subscribers from them.. Sometimes web surfers opting into one program are unaware that they are opting into another program. This can yield lots of new leads for an advertiser but some advertisers spend more time and money explaining to these new customers who they are, and what they opted into, and crediting them for a deal they didn’t want or expect.
Sponsorship – Some websites, blogs or portals sell their advertising on a sponsorship basis, meaning that advertisers pay to appear on a website. There are no guarantees for impressions, clicks or actions. Sponsorship allows an advertiser to buy branded exposure and be visible to the audience that is on a particular website.