There are four pay per call exposed pdf pricing models used in the online performance advertising market. The problem with CPM advertising is that advertisers are charged even if the target audience does not click on the advertisement. 1 in January 2007 than the prior year. CPL models allow advertisers to pay only for qualified leads as opposed to clicks or impressions and are at the pinnacle of the online advertising ROI hierarchy.
Advertisers need to be careful when choosing between CPL and CPA pricing models. In CPA campaigns, the advertiser typically pays for a completed sale involving a credit card transaction. If a visitor to the website doesn’t buy anything, there’s no easy way to re-market to them. The advertiser remains in control of their brand, selecting trusted and contextually relevant publishers to run their offers. On the other hand, CPA and affiliate marketing campaigns are publisher-centric.
Advertisers cede control over where their brand will appear, as publishers browse offers and pick which to run on their websites. Advertisers generally do not know where their offer is running. CPL campaigns are usually high volume and light-weight. On the other hand, CPA campaigns are usually low volume and complex. Typically, consumer has to submit credit card and other detailed information. Many advertisers have limited budgets and may not understand the most effective method of advertising. With performance-based advertising plans, they avoid the risk of paying large amounts for advertisements that are ineffective.
They pay only for results. The advertising agency, distributor or publisher assumes the risk, and is therefore motivated to ensure that the advertisement is well-targeted, making best use of the available inventory of advertising space. Electronic media publishers may choose advertisements based on location, time of day, day of week, demographics and performance history, ensuring that they maximize revenue earned from each advertising slot. The close attention to targeting is intended to minimize the number of irrelevant advertisements presented to consumers.
They see advertisements for products and services that are likely to interest them. Although consumers often state that advertisements are irritating, in many situations they find the advertisement useful if they are relevant. That is, the advertiser pays only when a consumer sees their advertisement. Some would argue that this is not performance-based advertising since there is no measurement of the user response.