The Popular Online Ad Models
» With some new people, the terminologies or acronyms of digital marketing are pretty new and their definitions lack practicality on some websites. So you might face several difficulties when using them and applying them in the right way for your campaigns. So in this article, I will particularly show full basic knowledge about popular online ad models such as CPM, CPC, CPA, CPS, CPL, CPI, and then I also show more details about weaknesses and strengths of each of them. Moreover, I would like to recommend the corresponding outstanding ad networks to publishers. Finally, I will give you a verdict in my opinion.
What is CPM?
» CPM stands for Cost Per Mille (in Latin, mille means one thousand), this is the cost an advertiser pays media companies for 1,000 views of an advertisement executed by users. It means the advertiser might pay a lot of money if the website has a major amount of traffic.
- Pros: undeniably, it is the most basic model, used commonly, based on it your ads approach the audience quickly. However, the main goal of CPM is only to build and increase brand awareness for a company, product and service, which do not tend to make an online sale immediately. One can say that it is used to show the business names, logos, and images as much as possible.
- Cons: as mentioned, if you use CPM to boost sales or get leads, you are only burning money. Because, sometimes the audience surf websites for relaxation and they have no intention to purchase or do something else, another. It means, it is meaningless to pay for these things.
What is CPC?
» CPC stands for Cost Per Click. By this point, the publisher charges the advertiser, whenever someone clicks on an ad.
- Cons: this is a positive way to get potential customers, but, on the other hand, click does not lead to sales, so it can be nothing then. Moreover, advertisers can face fraud in this model, because, with this model some company easily uses bots or some other techniques to control clicks.
What is CPA, CPS?
» CPA and CPS stand for Cost Per Acquisition and Cost Per Sale. For this pricing model, the advertiser pays only when a purchase is made.
- Pros: This is a relatively low-risk way to invest as the advertiser only pays when someone purchase their products.
- Cons: But many publishers won’t feel pleasure to sell this way, because make a sale is not easy at all, if there is no sale made, they will make no money. As a result, media companies want advertisers to have risks in their own business.
What is CPL?
» CPL is abbreviation of Cost Per Lead, meaning that the advertiser pays when a lead form is completed and submitted.
- Pros: its aim is not to make a sale instantly. This is forms lead delivered to those who are interested in the product and fill in the data (name, phone number, email …) into the form, based on these, advertisers make products or marketing strategies involving user’s demands.
- Cons: CPL also has many restrictions for enterprises, it could be hard to get conversion if you gather the worthless or fake information is programmed to fill in the lead automatically.
What is CPI?
» CPI stands for Cost Per Install, it means the advertiser only pays the ad network once the app is installed. It is mainly applied in mobile app marketing.
- Pros: likewise CPA and CPS, it is a low-risk ad model for advertisers. The cost of this model is more expensive than others, though, it is purchased for many app marketing. Because it is a fast way to get installs, and some CPI ad networks are reputable, and or immensely work hard to find potential users that will likely use an app.
- Cons: Others use incentives like giving a user free “gold” for a game in exchange for their downloading an app. These “incentivized installs” tend to be of low quality. In addition, there are also very disreputable companies that drive installs with bots.
» There is no answer for which model is the best, if you have comparison among them because it depends upon many aspects of each business. Irrefutably, advertising is so important to help your products land the audience, and ad types are tools for you to get aim more easily. So, you should choose a suitable model instead of looking for the best one.
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