Shanker Bakshi dot Com

Image by Juliaf

DO You Make Money From Your Blog - PART I

If you are thinking about monetizing your blog then better you must start it from today. If you are a newbie and started blogging recently even then there is No reason why you should not do it. But then the question arise what are the different ad campaign price models, what kind of ad inventory you should place on your website, what are the different payout methods. I will try to write about all these things but today let me explain what are the different Advertising pricing Models?

Cost Per Action or CPA

Sometimes known as Pay Per Action or PPA is an online advertising pricing model, where the advertiser pays for each specified action i.e. a purchase, a form submission, and so on) linked to the advertisement.

Cost Per Mille or CPM

Sometimes know as Cost Per Thousand or CPT is a commonly used measurement in advertising. Mille means thousand in Latin; therefore, CPM means cost per thousand. Online advertising can be purchased on the basis of what it costs to show the ad to one thousand viewers. CPM estimates the cost per 1000 views of the ad.

Pay Per Click or PPC

PPC is an advertising model used on search engines, advertising networks, and content websites/blogs, where advertisers only pay when a user actually clicks on an ad to visit the advertiser’s website. Advertisers bid on keywords they predict their target market will use as search terms when they are looking for a product or service. When a user types a keyword query matching the advertiser’s keyword list, or views a page with relevant content, the advertiser’s ad may be shown. These ads are called a “Sponsored link” or “sponsored ads” and appear next to or above the “natural” or organic results on search engine results pages, or anywhere a webmaster/blogger chooses on a content page.

What is Click Through Rate or CTR?

If you are using Google AdSense on your blog you may be keen to know what CTR is, as it’s a very important factor measuring effectiveness of your AdSense campaign. A CTR is obtained by dividing the number of users who clicked on an ad on a web page by the number of times the ad was delivered impressions or if I drill down it to more simple language it mean the number of times that page has been viewed on which you have place an Ad.

For Example
Campaign Ad Page Impression 25000
Campaign Ad Click 100 times
CTR would be 100/25 = 4 %

What is effective Cost Per Mille eCPM?

eCPM is a useful way to compare revenue across different channels and advertising programs. It is calculated by dividing total earnings by the number of impressions in thousands.

For Example
A publisher earned from a campaign $50
Campaign Ad Page Impression 25000
eCPM would be $50/25 = $2

Which is best Price Model Advertisement for your site?

If you are a newbie and have very less traffic to your site then you would not like to run a ad campaign on your site on which compensation is payable per thousand page impression. That will not be a fruitful venture. If you decide to run an ad campaign payment on which is payable on CPA basis then it may possible that you can make few visitor click the ad and do the action (i.e. a purchase, a form submission, and so) as desired by the advertiser.

Please help me know if you found this post helpful in understanding some of the basic Ad campaign Price Model by writing your opinion in comment form below. If you like to have some more information o the subject please do ask in comments.

Find out what I am doing right now by following me on Twitter! If you like this post then please consider subscribing to my full feed RSS. You can also subscribe by Email and have new posts sent directly to your inbox.