While you can direct traffic that comes to your website toward buying a product or service,
some websites, particularly magazines and blogs, earn revenue other ways. One is to include
advertising spots that promote other sites and services. These spots can be banners, video, text
links, or specific articles on your website, such as product reviews. When building your website,
you have to consider how to earn revenue from your website or blog and the different types of
advertisements that you can place within the website structure. With strategic planning, you can
monetize your website, maximizing your profits.
Cost Per Click
In this revenue model, the user clicks an advertising text link or banner, such as an image, text, or video.
The advertiser pays the website owner each time users click the mouse and visit the advertiser’s product or
service website. The Cost Per Click (CPC) varies based on many factors, such as the type of visitors coming to
the website and website competitors. For example, you can set the cost of a banner click at thirty cents
each time a visitor clicks this banner, the advertiser pays you this amount of money. This model does not
include how the visitor interacts with the advertiser’s product or website; the payment process is complete
once the user clicks the banner. Usually, this model is suitable for websites of all sizes that would like to
generate revenue from advertising. Visitors with the potential to click banners on your site have the
potential to click other links on your site, which can lead to possible revenue. Ad providers such as Google
AdSense, Yahoo Publisher Network, and Facebook handle the CPC campaigns for your website.
Cost Per Mille
The Cost Per Mille (CPM), or the cost per thousand, impressions model refers to the cost that an advertiser
pays a website owner to display the advertiser’s banner on the website owner’s site to visitors a thousand
times. For example, an advertiser pays you to display his banner for a number of website users regardless
of whether they click the banner or not; these displays are known as banner impressions. These impressions
do not include actions such as refreshing the page from the user’s browser. Therefore, if you sell 1,000
impressions on your website for $2 and the advertiser buys 10,000 impressions, he will pay a total of $20 to
you for displaying the banner to 10,000 of your website visitors. CPM is most profitable if your website
receives a lot of traffic or page views because you can sell large numbers of impressions to different
advertisers, and use rotating ads methods to display multiple ads in the same advertising area. CPM ad
providers include Facebook and BuySellAds that deliver advertising banners to your website.
Cost Per Action
The Cost Per Action (CPA) is commonly used by advertising networks and it refers to an advertising
campaign that pays you when your website visitors click the advertiser’s banner, which links them to the
advertiser’s site, and then conducts a specific process. This process can be buying a product from the
advertiser’s store, which is known as Cost Per Sale (CPS), or it can be completing a form to sign up for a
service or information or completing a survey page, which is known as Cost Per Lead (CPL). Most affiliate
marketing campaigns are based on this model: they only pay the website owner once visitors respond to the
ad by buying a product or completing a form or survey. If your website is new and does not have much
potential traffic, you will not be able to generate good revenue from this type of ad. You first must build
trust with website visitors in order for them to click links on your website and trust the products being
The fixed-price banner model means the advertiser pays a fixed amount for placing their banners on your
website for a period of time that is usually one month or more. In this case, the cost is paid in advance
regardless of the number of clicks or impressions the banner receives. The more clicks the banner receives,
the greater the possibility that the advertisers renew their banner placements for additional months. The
advertisers choose which websites to place their ads on based on a number of factors, such as the amount
of traffic the website receives, the category of the website, and the impressions that each page receives.
The fixed-price model is one of the easiest advertising models because you do not need to join an
advertising network to implement it all you need to do is contact advertisers and invite them to advertise
on your website. There are some networks, such as BuySellAds, that help you market your website banner
zones and provide easy management platform for your banners.
Effective Cost Per Mille.
While the Cost Per Mille (CPM) equals the display of a banner a thousand times to clients, the Effective Cost Per Mille (eCPM) refers to the action a user takes after clicking the banner. The eCPM is calculated by dividing the total earnings by the total number of impressions in thousands. For example, if an advertiser
earns $3 from users’ actions, and the ad appears 1,000 times, the formula for calculating the eCPM is
$3/1,000 *1,000 where 1,000 is constant, and the results of the Cost-Per-Click in this model is $3.
Next : Consider the Advertising Formats