What is the best Ads program on the internet?
by Filipe Sena | January 23, 2008 in Ads Programs | No Comments
After all, what is the best Ads program on the internet?
I’ve been asked many times for what would be the best advertisement program available in the internet these days!
So, I’ve decided to create a list of advertising programs, and their good/bad features.
I’ve also decided to share this list to the world, so, keep checking back to get the latest news on this subject!
First of all, let’s go through the glossary:
Pay Per Click
Definition: Online advertising payment model in which payment is based solely on qualifying clickthroughs.
Information: In a PPC agreement, the advertiser only pays for qualifying clicks to the destination site based on a prearranged per-click rate. Popular PPC advertising options include per-click advertising networks, search engines, and affiliate programs. Paying per click is sometimes seen by some as a middle ground between paying per
impression and paying per action. When paying per impression, the advertiser assumes the risk of low-quality traffic generated by the publisher. When getting paid for actions, the publisher assumes the risk of low-converting offers by the advertiser. In the PPC model, the publisher does not have to worry about the sales conversion rate of the target site, and the advertiser does not have to worry about how many impressions it takes to attract the specified number of clicks.
Click-Through
Definition: The process of clicking through an online advertisement to the advertiser’s destination.
Information: While the click-through is often the most immediate response to an advertisement, it is not the only interaction. Visitors may choose to type a company’s URL directly into the browser bar, or type the company’s name into a search engine box. This assumes, of course, that the company’s name and/or URL appears in its advertisements. Accurate counting of click-throughs involves excluding “robot clicks” and duplicate clicks. This takes on added importance when click-throughs are used as the measurement on which payment is based.
Cost-per-Click (CPC)
Definition: The cost or cost-equivalent paid per clickthrough.
Information: The terms pay-per-click (PPC) and cost-perclick (CPC) are sometimes used interchangeably, sometimes as distinct terms. When used as distinct terms, PPC indicates payment based on click-throughs, while CPC indicates measurement of cost on a per-click basis for contracts not based on click-throughs. For example, consider a campaign where payment is based on impressions, not clicks. Impressions are sold for $10 CPM with a click-through rate (CTR) of 2%. 1000 impressions x 2% CTR = 20 click-throughs $10 CPM / 20 click-throughs = $.50 per click.
Click-Through Rate (CTR)
Definition: The average number of click-troughs per hundred ad impressions, expressed as a percentage.
Information: It is important to distinguish what a click-through rate does and does not measure. The CTR measures what percentage of people clicked on the ad to arrive at the destination site; it does not include the people who failed to click, yet arrived at the site later as a result of seeing the ad. As such, the CTR may be seen as a measure of the immediate response to an ad, but not the overall response to an ad. The exception involves ads that display no identifiable information about the
destination site; in these cases the click rate equals the overall rate. Merely getting visitors to a site had value when Web site traffic was generally accepted as a measure of success. The trend towards profitability, along with better tracking tools, has resulted in less interest in click-through rates and more interest in conversion rates. A high click-through rate does not assure a good conversion rate, and the two rates may even share an inverse relationship. An advertisement geared towards curiosity clicks will result in fewer sales, percentage-wise, than an advertisement geared towards qualified clicks.
Cost-per-Action (CPA)
Definition: Online advertising payment model in which payment is based solely on qualifying actions such as sales or registrations.
Information: The actions defined in a cost-per-action agreement relate directly to some type of conversion, with sales and registrations among the most common. This does not include deals based solely on solely clicks, which are referred to specifically as cost-per-click or CPC. The cost-per-action (CPA) model is at the other end of the spectrum from the costper-
impressions model (CPM), with the cost-per-click (CPC) model somewhere in the middle. In a CPA model, the publisher is
taking most of the advertising risk, as their commissions are dependent on good conversion rates from the advertiser’s
creative units and Web site. Marketers looking for cost-per-action deals have several options. Publishers with considerable excess inventory may be willing to consider nonstandard offers. Sites specializing in incentive programs are in a position to offer CPA pricing on various types of leads, although the usual caveats concerning incentivized traffic still apply. Perhaps the most widespread use of performance-based pricing is affiliate marketing, whereby merchants/advertisers
determine what actions they want to reward and how much they are willing to pay.
CPM
Definition: Cost per thousand impressions.
Information: The CPM model refers to advertising bought on the basis of impression. This is in contrast to the various types of pay-for-advertising, whereby payment is only triggered by a mutually agreed upon activity (i.e. click-through, registration, sale). The total price paid in a CPM deal is calculated by multiplying the CPM rate by the number of CPM units. For example, one million impressions at $10 CPM equals a $10,000 total price. 1000,000 / 1,000 = 1,000 units 1,000 units X $10 CPM = $10,000 total price. The amount paid per impression is calculated by dividing the CPM by 1000. For example, a $10 CPM equals $.01 per impression. $10 CPM / 1000 impressions = $.01 per impression.
Ok, so you know the basics already!
Let’s start with the word famous:
Google AdSense
Overview:
High CPM and CPC
Contextual Ads
$100 Minimum Payment
Check and Bank Wire
*Approval needed, very strict TOS
Payment:
Electronic Fund Transfer (EFT)
Google has an EFT payment system available in a number of countries, which will help get your
AdSense earnings delivered directly to your bank account every month.
Google AdSense is by far the most used ads program around the web! It’s solid, has good rates and, above all, it integrates with your website perfectly!
(To Be Continued…)
