Gone are the days for display advertising that can be seen in periodicals since performance ad network and performance advertising are now available. In performance advertising, other means of electronic media aside from the Internet is used. Regardless of what kind, let us share with you the different pricing models used for performance advertising.
1. CPM (Cost Per Mile, or Cost Per Thousand)
This is a kind of pricing model wherein performance advertising is charged for impressions. An example is how many times a person or a group of people have viewed the advertisement.
On the other hand, the glitch of CPM advertising in the world of performance advertising is that the advertisers are still charged. It applies whether or not the target audience has clicked on the advertisement.
2. CPC (Cost-Per-Click)
This is the exact opposite of CPM. This is because CPC advertising only charges advertisers once the end user clicks the advertisement. Since the competition has become tougher, the search keywords used can be very expensive.
According to a 2007 Doubleclick Performic Search, the report shows that there are almost six times as many keywords on every cost per click (CPC). As of January 2007, it is more than $1 compared to the previous year. As a matter of fact, there is an increase in the cost per keyword by 33%. On the other hand, the cost per click also got bigger by 55%.
3. CPL (Cost per Lead)
In this kind of performance advertising, the advertisers only pay for the qualified leads. This means that regardless of the clicks or impressions that are generated by the lead, they still get compensated for their work. CPL advertising is also known as online lead generation.
In performance advertising, the pricing model is the most advertisers friendly. According to a latest research done by IBM, it shows that two-thirds of the senior marketers are anticipating 20 percent of ad revenue.
CPL also allows the advertisers to pay for only what is due. This means that they only get paid for any qualified leads, not for clicks based merely on impressions.
In the ROI hierarchy, CPL is on the summit when it comes to performance advertising.
Display advertising is the best example of CPL. It usually contains text, logos, photographs, location maps, or anything like it. Display advertising can be seen in periodicals. It can appear on the same page, on the page next to it, or on the general editorial.
This kind of performance ad network does not necessarily have pictures, audio, or vide. Texts may sometimes be more appropriate and effective. One example of which is when the messages are sent mobile devices and emails.
One kind of display advertising we see all the time is billboards. Since performance advertising is now all over the internet, the same goes for display advertising. It is a kind of internet marketing. It usually appears on web pages in different kinds, consisting of web banners.
Display advertising can be static or animated. It can be interactive too by adding audio and video into it.
So the next time you think you need real time bidding media buying or go for ad network . It has been proven to be effective. For more information about Internet advertising, please visit the website at http://www.adgorithms.com.