Advertising models and how they work

With the popularity and complacency with terms like e-mail marketing, digital marketing, dropshipping, passive income. We have the course to hear often about term like CPA, CPM, CPL e.t.c. We’re in a digital era with the web as portal to access basically everything thing that can be accessed digitally. The need for human relations isn’t as needful as it were a decade ago. We would be studying about these aforementioned term which are the following:

CPM: Cost per mille (CPM), likewise called cost per thousand (CPT) (in Latin, French and Italian, mille implies 1,000), is a normally involved estimation in publicizing. It is the expense a sponsor pays for 1,000 impressions of an advertisement on Radio, TV, paper, magazine,internet. It is utilized in promotion as a benchmarking metric to work out the overall expense of a publicizing effort or a promotion message within a gives medium. CPM helps to analyze the expenses of promoting efforts inside and across various media. A regular promotion effort could attempt to arrive at expected customers in numerous areas and through different media. The expense per thousand impressions (CPM) metric empowers advertisers to make cost correlations between these medias(radio, internet, TV) both at the arranging stage and during audits of past campaigns. It is rather a speculation to compare the results of an effort to advertise/market using 1,000 reach/traffic as a unit measurement.

Furthermore, CPM is used to measure the amount of progressive leads as a yardstick to compare profitablity of marketing expenses. Advertisers or marketers uses this model pay for a successful impressions which is calculated by the cost of the advertisement divided by the total number of impressions multiplied by 1,000. Platforms like Google AdSense pays you 51 to 68 percent for the impressions as they make their own profit since the negotiation or bidding has been made with the advertisers. You the publisher is expected to attract views to earn higher Commission. This can be a different situation if you’re selling ads space as you have the leverage to earn more since you’re earning directly from your website without an ad network like Google AdSense, adsterra. The same earning model applied in this case but you are to do the bidding.

CPA: Cost per Action(CPA) is a model where advertisers pay for clicks actions. This type of marketing model suparsses the views/impressions. It has to do more with the interactions that led to new customers. With this model, you’d be paid for the customers that clicked the ads. This could involve downloading softwares, listening to music, watching videos. The payout is calculated by the total cost of conversion by the total conversions.

CPC: Cost per click (CPC) is another model that pays for the clicks on an ad. If the ad was opened then it’s a click action. CPC is calculated by dividing the total of your cost by the number of clicks. Your CPC is the total amount you’re charged for a click on your ad.

Below are sites that allow you to earn as an ad publisher 👇🏽

Click to sign up for Adsterra

Click to sign up for propeller ads


One response to “Advertising models and how they work”

  1. […] they see the ads, and I earn money. If user clicks, I have an impression and Adsterra pays me by CPM. Here’s another way to earn revenue with social […]


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