Whether you’re just getting started with a blog and want to make money off of it, or you have an existing web marketing campaign that needs an energy boost, knowing the difference between the types of web campaigns available can help you make an informed choice.
It may also mean the difference between a generous cash flow and an ad campaign that seems dead in the water and doesn’t earn a dime.
The main types of ad campaigns to know include:
- Cost per lead (CPL)
- Cost per fan (CPF)
- Cost per click (CPC or PPC)
- Cost per thousand (CPM, where M stands for thousand)
- Cost per action (CPA)
Cost Per Lead
Means that advertisers pay when a viewer completes a lead form, a form that requests more information from the advertiser. The viewer has no obligation to commit, only to express this initial interest.
If you provide distinct services, such as attorneys or financial advisers, cost per lead works well because you receive a tangible connection to interested parties and can follow up.
Similar to CPL
Cost per action requires the viewer to take a predetermined action that you set. An action may include signing up for an email newsletter or making a purchase.
CPA is more beneficial to advertisers than cost per click (CPC or PPC) because viewers take a specific, committed action such as purchasing a product or committing to learn more about the advertiser.
However, if the CPA advertisements aren’t a good match for the website’s user base, the campaign can lie dead in the water.
Cost Per Fan
CPF, requires another type of action on the user’s part; specifically, that of becoming a fan on a social media site. With CPF, viewers must connect with your social media presence; you pay money for every fan connection.
This works well for advertisers that need to build brand awareness, promote products or want to target the type of demographics that are drawn to the target website or blog. Concurrently, companies that don’t have large-scale social media needs won’t need CPF.
Cost per click
requires only a click on the part of a viewer. CPC pays a low rate for each click; clickers are not required to take further action. With a CPC ad, you only pay when the ad is clicked, but not for just views, so you potentially gain ad impressions that you don’t have to pay for.
Many advertisers like PPC because it is easy to set up and they can keep earning indefinitely. However, a click in and of itself is a fairly weak action. People may click the ad, then not convert, so the potential of CPC ads to turn into business leads can be lower than CPF or CPA ads.
Cost per thousand pays a low rate for every thousand views of an ad, with users required to take no action at all. Many advertisers like CPM because it’s transparent–but it also does not guarantee advertisers anything other than an impression.
If you have a widely read blog, CPM may work well because of your high traffic.
Because your marketing needs may change as you evolve, what’s right for you one day might not be right down the line. Revisit your marketing strategy periodically, and change direction when necessary to continue to earn.