CPC, CPM or Flat-rate?
Posted on July 28, 2008, under Advertisement by Ikki.
Hi peeps,
Recently, I got this comment from a friend on one of my posts about Site Monetization:
A good trick would be to do manage Manual Advertising with Monthly or CPM based ads rather than Cost Per Click or Cost Per Sale which is kind of outdated and doesnt produce so much revenue as compared to Monthly or CPM based ads.
His comment kept me thinking about Web advertisement metrics (CPC, CPM, CTR, PPL, Fixed-rate, etc) and how each one of them apply on different business models - so I though “What do my readers think about it?”
Web Advertisement Metrics
Nowadays, there are a lot of different Advertisement metrics on the Web Marketing Industry. However, I believe that CPC (Cost-Per-Click), CPM (Cost-Per-Milli, cost per 1,000 impressions) and Fixed-rate are the most popular metrics among most webmasters. However, how do I know which one is best for me and my business model and / or site?
CPC vs. CPM vs. Flat-rate
CPC: by far, the choice for the majority are CPC-based Ads. With CPC, you get paid each time a visitor clicks on the ads displayed on your site - which means that your ad placement & blending must be good in order to get more clicks. More clicks = more money for you, and more traffic for the advertiser.
Some known CPC (a.k.a. PPC - Pay per Click) Advertising programs: Google Adsense, Bidvertiser and now Facebook.
CPM: Cost-Per-Milli suits best for popular sites. The reason behind this is that with CPC you need large amount of impressions to get a decent revenue from them. Smaller sites should avoid this kind of advertisement metric.
Some known CPM Advertising programs: Burst Media, Advertising and Casale Media.
Flat-rate: this metric involves no cost-to-performance criteria. You get paid a fixed amount for the week / month no matter what happens to your site during that time. It’s a nice, steady way to generate incomes by selling advertisement.
So, which one is the best?
Based on my personal experience, I can say that Fixed-rate based ads works better. You get paid no matter how’s your site’s performance during that week / month. So if your traffic is low during that period you get a good deal, and if your traffic increases then the buyer gets a good deal. It’s that simple.
However, this is my experience. What about yours? Which one works for you the best?
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2 Replies to "CPC, CPM or Flat-rate?"
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Lucas on July 30, 2008
IMO fixed-rate ads are the best.
You get the money that YOU want without any other factors hindering your earning potential.