(Cost Per Mille), also called "Cost Per Thousand (CPT), is where advertisers pay for exposure of their message to a specific audience.
"Per mille" means per thousand impressions, or loads of an advertisement. 
However, some impressions may not be counted, such as a reload or internal user action.

(Cost Per Visitor) is where advertisers pay for the delivery of a Targeted Visitor to the advertisers website.

(Cost Per View) is when an advertiser pays for each unique user view of an advertisement or website 
(usually used with pop-ups, pop-unders and interstitial ads).

CPC (Cost Per Click) is also known as Pay per click (PPC). 
Advertisers pay each time a user clicks on their listing and is redirected to their website. 
They do not actually pay for the listing, but only when the listing is clicked on. 
This system allows advertising specialists to refine searches and gain information about their market. 
Under the Pay per click pricing system, advertisers pay for the right to be listed under a series of target rich words that direct relevant traffic to their website, and pay only when someone clicks on their listing which links directly to their website. 

CPC differs from CPV in that each click is paid for regardless of whether the user makes it to the target site.

CPA (Cost Per Action) or (Cost Per Acquisition) 
Advertising is performance based and is common in the affiliate marketing sector of the business. 
In this payment scheme, the publisher takes all the risk of running the ad, and the advertiser pays only for the amount of users who complete a transaction, such as a purchase or sign-up. This is the best type of rate to pay for banner advertisements and the worst type of rate to charge as it ignores any inefficiency in the sellers web site conversion funnel. 


CPL (Cost Per Lead)
Advertising is identical to CPA Advertising and is based on the user completing a form, registering for a newsletter or some other action that the merchant feels will lead to a sale.

Also common, 
CPO (Cost Per Order) 
Advertising is based on each time an order is transacted.

CPE (Cost Per Engagement) 
Is a form of Cost Per Action pricing first introduced in March 2008. Differing from cost-per-impression or cost-per-click models, 
a CPE model means advertising impressions are free and advertisers pay only when a user engages with their specific ad unit. 
Engagement is defined as a user interacting with an ad in any number of ways.

Cost Per Conversion 
Describes the cost of acquiring a customer, typically calculated by dividing the total cost of an ad campaign by the number of conversions. 
The definition of "Conversion" varies depending on the situation: it is sometimes considered to be a lead, a sale, or a purchase.

The Most Common Ways In Which Online Advertising Is Purchased Are  ...


Site Metrics

A website is measured by the quality of its contents, traffic and visitors.
1. Contents
The contents of your website is the core of all activities. It attracts both visitors and potential advertisers. The definition of content differs from one website to another and from one industry/category to another. It could be articles, songs, games, forum posts, photos, etc. It is your primary product so be sure to dedicate your effort and attention to continuously improve and expand it. The objective is to generate more contents with high quality, relevance, usefulness to attract more visitors and advertisers.

2. Traffic
First, the more visitors you have, the more attractive your website is to a potential advertiser. Second, the higher traffic you have, the more money you will earn from your advertisers. The most basic traffic information you must know is the total number of monthly page-views and visitors. One ad view is counted as one impression. If a page contains 4 ads, there will be 4 ad impressions per page-view. You need to understand that web traffic is not equal in quality. Some is more desirable than other. For a local advertiser, visitors from a foreign country maybe irrelevant. Moreover, many locations and countries are known to generate fraudulent and inflated clicks so advertisers will want to target their ads to certain areas only.

3. Audience
How much do you know about your visitors (age, sex, locations, interests)? If you have a large audience base with similar interests, you will have a better chance to find advertisers with relevant products and higher ad rates. When advertisers know exactly whom they are promoting their services and products to, they are more likely to commit to a higher ad rate, a longer display time or a larger advertising contract.
Pricing Models

These are some of the most popular ways to charge for your advertising space:

1. CPA (Cost Per Action, Cost Per Acquisition, Cost Per Lead, Cost Per Purchase)

The advertiser is charged every time a visitor makes a transaction or purchases a product. These conversions are reported to the advertiser. Publishers can either set a price for each conversion or let the advertisers choose their price. Advertisers like this model since it offers the highest quality and return on investment. Advertisers often control the pricing with this model. For example, a lead to book a cruise can be worth $50 or more. It means the advertiser will pay you $50 when a visitor successfully calls/asks about a cruise when looking/clicking on their cruise ad from your website.

2. CPC (Cost per Click)

The advertiser is charged for each click on their ads. Clicks are priced from as low as $0.01 to more than $10 per click. Either publisher or advertiser can set the price. However, one of the concerns for advertisers with this model is click frauds. In this scheme, click counters are inflated artificially to drive up the advertising cost. Publishers should use an ad server with click-fraud prevention technology to offer protection for your advertisers.

3. CPM (Cost Per Mille, i.e. Cost Per Thousand Impressions)

The advertiser is charged per thousand impressions. It is one of the more popular model among medium-to-large publishers. Advertisers do not have to worry about inflated clicks as in the CPC model. At a $5 CPM, 10000 visitors a month with an average of 5 ad views each will earn $250. CPM is a very viable model when a publisher has more than 500,000 impressions per month. For smaller advertisers, number of available impressions can be low because of different targeting criteria, including frequency capping, geographical targeting to prevent exceeding advertising budget and yet maintain a high quality traffic. The downside with the CPM model is there is no consideration for clicks, conversions and ultimately purchases.

4. Flat Rate

The advertiser pays a fixed price to display an ad for a period of time. This is popular among smaller publishers and advertisers because it is the simplest model with very predictable earning/expense. Publishers present their website metrics (page views, audience reports, CTRs) to the advertisers and name their advertising rates. Advertisers consider the pros and cons and make a decision to purchase an ad space for a period of time, often one calendar month at a time. Rates depend on the expected traffic, ad placement location, ad dimension/size, and length of contract. Since the earning is known ahead of time, publishers can focus on other areas of their website. This model allows both publishers and advertisers to budget their costs and predict their profits.

5. Hybrid or Combination of Multiple Models

With advanced ad servers like AdSpeed Ad Server, you can combine multiple pricing models to work for both you and your advertisers. For instance, $1000 per month plus $1 per click is a combined model of Flat and CPC. It means the publisher will have some guaranteed income (Flat) while earning extras on the clicks (CPC). The advertiser can enjoy discounts on the flat rate while providing incentives for performance.

It’s worth expanding upon the differentiation between cost per thousand impressions (CPM) and revenue per thousand impressions (RPM). The former (CPM) refers to the amount paid by an advertiser. The latter (RPM) refers to the amount earned by the publisher. In some instances, these amounts will be equal. For example:

An advertiser pays a $10 CPM to run 100,000 ads (a $1,000 total expense).
The publisher earns a $10 RPM for serving those 100,000 ads ($1,000 in total revenue).
In other cases, there may be a meaningful difference between the CPM and an RPM. This occurs for two primary reasons:

An ad network takes a cut of the amount paid (i.e., the ad spend is split between the publisher and the network).
A publisher has a fill rate of less than 100% (i.e., some page views have no ads served–or an effective RPM of $0).
To use our example above, let’s assume that the advertiser spends the $1,000 to get 100,000 ad impressions–their RPM remains constant at $10. The publisher, however, serves a total of 200,000 page views. Half of those show the ad, while half are blank because no ad was sold. (I.e., supply was greater than demand; in reality, this is a pretty rare occurrence given the sophistication of ad networks.) Further, the publisher used an ad network that takes 50% of gross spend. The result is $5,000 in revenue to the publisher for 200,000 pageviews, or an effective RPM of just $2.50. This is obviously quite a bit less than the advertiser CPM of $10.

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