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The Imperfect World of Quantifying Website Traffic
Online Advertising Lingo
Necessities for Every Company with a Website
Paid Advertising
Leveraging the True Power of the Internet Bootstrap Marketing Online
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A Dated Introduction to Online Marketing* *Note: This is the original version of a whitepaper that was authored in 2001 by iCondotta's founder and principal consultant, Stephan Aarstol. It's a useful primer, but dated - pre-Wikipedia (2001), pre-Google AdWords PPC (2002), way pre-YouTube (2005), you get the picture... Ad Pricing Model Comparison In general terms, CPA and CPC pricing models are more attractive to advertisers who aren’t concerned with exclusivity or having a presence on the websites that offer the best (most responsive) media. If you’re just looking to get traffic, any traffic, to your website, and you can find a CPC or CPA pricing model on a good media channel for your market niche, than this is probably your best bet. No big surprise here - you usually get what you pay for. Since media owners set their own pricing models, the premium media that is most responsive tends to be sold according to a sponsorship or CPM model. It’s simply supply and demand. Given the ubiquitous nature of the web, like-minded users tend to gravitate towards a few select sites for each specific purpose. Because of this, advertisers can effectively put a strangle hold on their competitors advertising efforts in the one or two key websites for your niche by securing a few well-placed exclusive placements. These exclusive placements typically sell on a sponsorship or CPM pricing model. View the Comparison Chart at the bottom of this page for side by side comparison of the different pricing models. Authored in 2001
by Stephan Aarstol |
Comparison Chart for the
Different Ad Pricing Models |
| Sponsorship | CPM | CPC | CPA | |
| Availability | High | Extremely high | Very low | Extremely low |
| Availability of premium web real estate being sold according to this pricing model |
Best spots are usually reserved for sponsorship |
Banners can be found everywhere but the most coveted spots |
Very rare | Non-existent |
| Targeted | Almost always | Sometimes | Highly | As good as it gets |
| Branding potential | Extremely effective | Effective if delivered to targeted audience |
Not usually as it’s almost impossible to find targeted CPC banner placements |
Rarely - CPA placements are usually only found with affiliate deals |
| Which party bears the risk | Advertiser - high risk, high reward | Advertiser - low risk if branding is goal, higher if click-thru is goal | Media owner | Media owner - high risk, little reward |
| Entry fee - Minimum cost to make a placement | Expensive | Moderate | Low | Extremely low |
| Potential risk for fradulent charges | None | Minimal | High | Very high |
| Cost effectiveness if driving click-thru is your goal |
Not really | Moderate | High | Extremely high |
| Degree of ability to quantify success with stats |
Low | Moderate, but not if branding is being measured | High | Extremely high |
| Degree of ability to compare viable advertising alternatives |
Low | Extremely high | Low | Low |
