What Are the Different Online Advertising Models?

What Are the Different Online Advertising Models?
2 years ago

An important step for every business owner to make these days is to find a way to get their business online. Once that’s all said and done, it’s time to make sure your potential customers know about it. One of the more common ways companies do this is through advertising. If you’re new to this space, though, it’s going to be a bit of a challenge figuring out which of the many online advertising models is best for your business. Lucky for you, we’re here to help!

PPI (Pay per Impression)

The first type on our list is PPI. Impression in this instance means that the ad showed up on someone’s screen. They don’t have to interact with it at all for you to get charged for it. While that might sound like a bad thing since you have to pay for people who barely even notice it, it’s still a solid choice to go with.

This is because it’s one of the cheapest options. Most of the time, PPI ads get sold in a CPM (cost per thousand) format. Understandably, some people confuse the “M” in CPM to stand for million, but it’s actually the Roman numeral for one thousand. If you pay in this format, you’ll typically be paying less than a penny per impression.

But other than cost, why should you try this format? The main goal of this type of advertising is simply to get your name out there. It’s more focused on building brand awareness than making conversions. Depending on what stage your business is in, PPI might be the perfect choice for you.

PPC (Pay per Click)

Let’s move on to the most popular format of the various online advertising models: PPC. If you don’t like the idea of paying for people who don’t interact with your ad, then PPC will be more your style. Of course, that means it’ll cost a bit more, but the price will vary depending on where the ads show up. More populated sites can cost around $1 per click, but it’s still possible to find ones for as low as a penny. It’ll mostly depend on what types of markets you’re trying to hit.

Since the use of PPC is so widespread, there are a bunch of companies that offer it. Google and Amazon are two of the biggest in this territory. It’s a good idea to learn the key differences between the two, so you can make a more informed decision for your company.

PPA (Pay per Action)

Last but not least, we have PPA. An action, in this case, means that the user did more than just click on a link. They also performed an action, such as signing up for a newsletter, creating an account, or making a purchase. While the most expensive choice, this type of ad guarantees that your money is only going towards people who are willing to commit to your business.

It is possible to find options that only charge you when you complete a sale, but this is more known as profit sharing. At the end of the day, you just need to pick the model that best matches your company’s goals and needs.

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