Have you decided to monetize your blog through an ad network and are not sure which one to choose? There are several criteria to choose the best. One of them is the form of remuneration. In this entry I will introduce you the most common.
What will you learn here?
Cost per thousand impressions (CPM)
With this payment model your earnings depend on the number of impressions. That is, if you put a banner to each page of your blog, the more pages your readers visit, the more you earn.
If you talk to representatives of an ad network, you will see that they never mention the price of a single impression. The cost per thousand impressions (CPM) is typically used as the metric.
When does it pay off to choose this type of reward? According to my experience, it is very suitable for entertainment websites. If you have a blog with jokes, funny pictures or celebrity gossip, it is very likely that every reader will visit many pages and see many ads without clicking on them. Therefore, with the CPM model you will earn more than with pay-per-click.
In this case, it does not matter if you display 100 or 1,000 advertisements per day. What counts are the clicks. In other words, your earnings depend on the number of clicks your readers make.
Apparently, today it is the most preferred form of payment by both advertisers and publishers.
When does it pay off to choose this form of remuneration? If you want to insert banners (or text ads) into your blog in a way that catches attention and gets a lot of clicks, PPC will be the best option.
If you cannot decide between the payment per click and the cost per thousand impressions, try the fixed price.
There are ad networks that let you set your own price for each day (week, month) that the advertisement shows on your blog. In this case you should experiment a little with the prices. If you charge more, you will earn more whenever an advertiser buys the ad space on your blog. On the other hand, if you charge less, you will attract more advertisers.
When does it pay off to choose this type of remuneration? In my opinion, this is a good solution for blogs with at least 1,000 daily visitors. It is logical – imagine you are an advertiser buying advertising space. It would be very laborious to buy ads on tens or hundreds of websites to achieve decent results.
Combination of fixed price and PPC or CPM
The fixed price may seem attractive, but if the advertisers do not buy all your advertising space, you are losing money. Some ad networks have solved this problem in a very elegant way.
They let you set your own prices and if you do not sell 100% of your advertising space, PPC or CPM ads are displayed. Therefore, you can set highest prices. Or you sell for these prices, or you earn with PPC or CPM ads.