Web banners are usually part of a pay-per-click advertising campaign.
Banner ads are small display ads placed on websites that are used to drive traffic to a company’s website. There are three main types of banner advertising costs: cost per thousand (CPM), cost per click (CPC), and cost per action (CPA). Less popular types include cost per visitor, cost per view (CPV), and cost per lead (CPL). Different website owners prefer different cost models.
Cost per thousand (CPM) is an element of online marketing that refers to how much advertising costs a business for every 1,000 impressions.
The most preferred costing method is CPM, in which an advertiser pays a certain amount of money for every 1,000 users who see the ad. This method does not require the visitor to click on the ad. The visitor only needs to view the page containing the ad for their view to be counted as an impression.
Another popular method for calculating banner advertising costs is the CPC model. In this system, advertisers pay a fee every time a user clicks on one of their ads. The advantage of this model is that it allows for greater exposure because thousands of people can see the ad but not click on it. That doesn’t mean they won’t notice the ad or the advertised product or service.
The CPA method is strictly used in affiliate marketing. A company will provide banners to an affiliate and then the affiliate will pay all the fees necessary to install that banner on the Internet. Every time the affiliate generates a paying opportunity, they earn a commission. This is an extremely cheap form of banner advertising, but it comes with risks because it doesn’t take into account conversion rate inefficiency.
Other types of banner advertising costs are less popular, but are still used sometimes. The cost per visitor method allows an advertiser to pay only for specific viewers, while the CPC method involves paying for each unique view, regardless of targeting. Unlike cost per visitor or CPC, CPL is the same as CPA, except that the desired action is for users to register an account, fill out a form, or the like.
Choosing between different types of banner advertising costs requires determining which one would provide the best conversion rate. While the CPM method may provide many leads and sales for one advertiser, it may result in lost profits for another. There is no set method for choosing one.