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  • Nothing in life is free - and this is particularly true of online advertising. Ad space is sold

  • by website publishers - including newsites, blogs, weather sites, sports sites, you get the picture.

  • Publishers charge different rates for their ad space. How they calculate costs depends

  • on their clients' goals.

  • If an agency wants to boost brand awareness by wallpapering the internet with their client's

  • advertisements. For example, they'll probably use the CPM model. CPM stands for Cost Per Thousand Impressions...

  • the Thousand is silent ;). An example CPM might be $10.00 to secure top space on a popular

  • website's homepage.

  • If the client is more focused on response rate - like driving traffic to a new part

  • of their website - the agency may use the CPC (Cost Per Click) model. An example CPC

  • might be ten cents per click.

  • Advertisers may use what's called the CPA model when they want more bang for their buck.

  • This might be a desire to drive sales, increase email sign-ups, or get people to request a

  • quote online. All of these events are valuable, depending on what the client's goals are. We call these

  • valuable events *Conversions*.

  • For example, the publisher gets paid when the visitor sees the ad on their site and

  • makes a purchase.

  • There's no guarantee that someone is going to click an ad, let alone buy something on

  • the advertiser's site. Because of this, publishers take on more risk when using the CPC or CPA

  • models.

  • This is why CPC and CPA rates are typically more expensive than CPM rates.

  • CPM, CPC, and CPA - these three little acronyms make a big difference in how publishers get

  • paid.

Nothing in life is free - and this is particularly true of online advertising. Ad space is sold

Subtitles and vocabulary

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B1 UK cpa ad client online model website

Online Ads 101: Cost models for online media

Video vocabulary