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CPM, CPC and CPA or PPM, PPC, and PPA for publisher and advertisers????


Posted Date: 03-Jan-2009  Last Updated:   Category: How things work    
Author: Member Level: Gold    Points: 7



CPM, CPC and CPA or PPM, PPC, and PPA ????

CPM (PPM): cost per thousand (Pay Per Thousand) impression for advertisement . here, no action required from visitors.
Adbrite, tribal fusion

Advantage of CPM (PPM) for publisher:
1)Publisher will earn for every thousand impression.
2)Constant payout.
3)Least risk.
4)No need to worry about CTR (Click Through Rate).

Advantage of CPM (PPM) for advertisers:
1)These cost least for advertisers.
2)Least risk involve.

Disadvantage of CPM (PPM) for publisher:
1)High traffic is essential to earn good amount.
2)Less paying.
3)No pay for clicks.

Disadvantage of CPM (PPM) for advertisers:
1)Poor conversion.
2)High risk.
3)Difficult to control.

CPC (PPC): cost per click (pay per click) it pays when visitors click on ads.it pays more than CPM(PPM) program.
Google ADSENSE , YPN, KONTERA,BIDVERTISER etc

Advantage of CPC (PPC) for publisher:
1)Normally paid more than CPM(PPM) program.
2)Can block url.

Advantage of CPC (PPC) for advertisers:
1)They get visitors without click.
2)Better than above.

Disadvantage of CPC (PPC) for publisher:
1)CTR is important factor.
2)Payout is impossible to determine.
3)Ads not available for certain niche.
4)Account risk in case of fraud clicks.

Disadvantage of CPC (PPC) for advertisers:
1)Can be blocked.
2)Bid varies.
3)Click fraud.

CPA (PPA): cost per action (pay per action). This requires visitors action for any payout like adsense referral, YPN referral or other in which you need to fill form and register. highest paying program.

Advantage of CPA (PPA) for publisher:
1)Probably higher payout than above two program.

Advantage of CPA (PPA) for advertisers:
1)Least risk .
2)Visitor see ads without clicking.
3)Accurate control on sale or referrals.

Disadvantage of CPA (PPA) for publisher:
1)Click will not pay.
2)High risk.
3)If conversion is not good than it is free for advertiser.

Disadvantage of CPA (PPA) for advertisers:
1)High cost
2)Pay only for conversion
3)Fake filling etc

conclusion:
CPM is best for publisher but CPA is best for advertisers.


Reference: http://funbyearn.blogspot.com


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