Advertising Pricing Model

Different models exist for pricing advertising in web sites. The different models have one common denominator in common. The utilize Trackers which
count transactions and allow parties to calculate fees.

Cost Per Action - CPA

User pay per action. The action can be a viewing of a banner, a click on a banner.

Cost Per Mille - CPM

Based on a print advertising pricing model, it is the same as CPA except it uses a thousand actions as its base unit.

Cost Per Impression - CPI

In this pricing model the client pays each time a banner is displayed. It is used by sites with high volumes of traffic that cannot guarantee its quality.

Cost Per Click - CPC

Also caled pay per click (PPC). In this pricing model the client  pays the advertiser only when a banner is clicked

Cost Per Lead - CPL

In this pricing model the client only pays for actions that resulted in lead. A lead usualy indicates that the user has registration his details. CPL only rewards Targeted Traffic so it requires either a high quality traffic source or a smart routing technology applied to a high volume source. It does not include revenue sharing.

Although they it also supports CPM, Goggle Ad Words is primarily geared for generating CPL traffic by placing an advertiser's copy on websites it considers most suitable.

Cost Per Sale - CPS

Also called Pay Per Sale (PPS) - In case where a lead has converted to a monetary transaction.

Revenue Share

An incentive scheme based on mix of a one time and and ongoing sharing of revenue resulting from an initial lead.

Tracker

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