Online Marketing Consultantabout . expertise . principals . portfolio . fees . contact . home


  Online Marketing Whitepaper
 

Online Marketing Whitepaper

Introduction

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

 

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.

>> Permission Marketing

Authored in 2001 by Stephan Aarstol
while Director of Business Development
at AuntMinnie.com


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