Quantcast

CPM VS PPC VS CPA Advertisement

October 26th, 2012 | by onlineincomejobs.com

In the table given below a detailed comparison between Cost per Mille advertising, Pay Per Click advertising and Pay Per Action advertising is given. Comparison criteria are advantages, disadvantages for both the publisher and the advertiser. In the end there are some famous networks which can be used to have a successful advertising campaign using any of your desired advertising techniques.

 

CPM

PPC

CPA

Introduction

CPM or also known as cost per thousand is a technique to estimate the cost of displaying any advertisement on a web page. PPC advertisement is used by many websites and search engines, where the users click on ads which generates revenue on every click an ad get. As the name suggests that this is an advertising technique in which the advertiser pays for his ad only when the viewer of the ad takes any action on that ad.

Benefits for Advertiser

  • Placement targeting.
  • The advertiser knows how many ads are viewed daily.
  • Low cost advertising

 

  • Advertiser can spread information about his product even without the clicks.
  • He can block any website to show his ad.
  • Smart pricing.
  • The advertiser is in complete control and the publisher is under risk.
  • Pay only when any action is performed.
  • Also called as “free CPM

Benefits for Publisher

  • Minimum risk, maximum outcome.
  • Not concerned about CTR.
  • The publisher knows how much money he will be able to generate.
  • Paid according to the market rate.
  • Risk is moderate.
  • This is the most beneficial advertising scheme for publisher among all.
  • Most profitable among all.

Disadvantages for Advertiser

  • The risk is pretty high in this advertising scheme.
  • The conversion rate is very low.
  • No criteria to measure the success of your campaign.
  • In PPC, advertiser might also have to pay for fake clicks. Therefore there is a high risk of fraud involved in it.
  • Advertiser have to bid on the ongoing rate of the keyword which might be expensive.
  • Ad of the advertiser can get blocked by some publishers.
  • Cost of CPA is very high.
  • Customers are reluctant to give away their information therefore it is a big challenge for the advertiser to get customer information.
  • Risk of fraud is very high. Someone might hire another to fill out a form with dummy data.
  • The conversion rate is very low.

Disadvantages for publisher

  • To get profit, publisher needs high traffic on his website.
  • The profit margin is very low.
  • One must view the ad after clicking it.
  • Only click will not work for the publisher.

 

  • CTR should be very high.
  • It is not guaranteed that publisher gets paid for every click.
  • Smart pricing.
  • If advertiser comes to know about fake clicks then the account of the publisher may get terminated.
  • The publisher is only paid when someone completes the specified action on the advertisement.
  • Advertisers may play foul with the publisher.
  • Banners doesn’t have any conversion rate so the publisher is not paid anything for banner ads.

Famous Networks

  • Tribal Fusion
  • Google Adsense, Bidiveriser, Clicksor, YPN.
  • LinkShare, Share a sale, Commison Juction.

 

With this comparison you might have got some idea about good, better and worse advertising techniques.