As you start down the road of blogging and earning money online you’re going to be confronted by a lot of acronyms. A few of the most important ones when it comes to online revenue are CPC, CPM, and CPA.
CPC – Cost Per Click:
Cost Per Click (CPC) ads pay you, wait for it… , per click received. The biggest example of this ad type out there is an ad system like Google Adsense. You may have 1,000,000 impressions (each appearance on a page view), but if no one clicks the ad then you get $0.00. Not exactly the way to make it big as a blogger.
The good news with CPC ads is that the proper placement and relevance to the topic can result in very high returns. CPC ads inserted into the middle of your post, right where readers are looking, will have a high CTR (click through rate) while the ads put off to the side and away from your content are likely to be rarely discovered and clicked.
CPM – Cost Per Thousand:
Cost Per Thousand (CPM) – the ‘M’ comes from the Roman numeral for one thousand, but you can just remember it for “iMpressions” – ads are not based on the amount of clicks but rather the size of viewership. You can think of this more akin to newspaper ads because there’s no interaction required for you to get paid. Of course, if the advertiser sees very low CTR then they are likely not to renew with you.
You can find a great method of CPM ads through Value Click Media.
CPA – Cost Per Action:
Cost Per Action ads are typically referral operations. You promote a product or service, someone clicks through your links, signs up or whatever the required step is, and you get paid. The CPA ads can be very profitable if you find the right niche to target. The important idea behind these is that the ads must be relevant to be successful. If your site is about sports and you’re promoting baby clothes then you may pick up an occasional random referral, but you’d be better off referring sports event tickets.
Along with having sidebar ads for CPA systems you can go the route of making personal recommendations. But beware, if you’re trying to promote and sell something that’s not very good then you risk your reputation with readers. If the product or service is great and something you use then I’d say you’ve found a good item to recommend.
There are many great methods to monetize your website, but don’t stop with just one. In an upcoming post I’ll tell you how to “stack” ad systems to make sure you’re getting the most out of your website.