Generate more revenue with these tips.
Before launching a revenue-driven ad campaign, it’s critical that publishers understand what they’re getting into. The realm of ad revenue is multi-faceted, and each facet must be carefully considered in order to achieve maximum return.
Let’s tackle the three most important elements of ad revenue: types of ad revenue models, the factors that impact ad revenue, and the importance of your target audience. Knowing these will give you a strong foundation as you progress to the next two steps in our guide.
If you’re new to digital advertising, you may be surprised by how many ways publishers can use – separately or all at once – to start generating revenue. Here are five of the most popular models you should know about.
CPM is a type of advertising where advertisers pay an ad platform to display their ads on various publisher websites. If they choose the CPM model, then they only have to pay whenever their ad is seen by random internet users 1000 times.
Publishers who want to get paid from CPM ads must partner with an advertising platform like Setupad. Once the agency approves them, the agency starts placing ads from their clients on the publisher’s website. Every time the ads get 1000 impressions, the agency gets paid and splits the profits with the publisher.
Publishers can make money from CPC ads in much the same way they do from CPM ads. Except instead of generating revenue per 1000 impressions, they generate it every time a visitor to their site clicks on the ad.
Once again, CPA uses the same basic concept as CPM and CPC. But instead of paying per 1000 impressions or per click, the advertiser pays per action. The action could be a purchase, a subscription, or a registration.
Basically, paying per action guarantees that the advertiser only has to pay for an ad when it leads to a random internet user achieving their desired outcome.
Revenue sharing is when publishers share revenue earned by the advertising platform from the ads they place on the publishers’ websites. One such platform is Google AdSense, which shares 68% of the ad revenue from content ads and 51% of revenue from search ads with publishers.
Sponsorship advertising is when advertisers pay to sponsor a publisher. In return, you display the advertiser’s company name on your website and in your content.
The following five factors can impact the amount of ad revenue that publishers make, regardless or even because of the ad revenue models they’ve chosen.
The amount of traffic, or visitors, that your website receives has perhaps the biggest impact on ad revenue. Advertisers and advertising platforms are more likely to sponsor you if you have a high traffic volume and valuable (i.e., engaged) audience.
Ad placement refers to where ads can be placed throughout your website. The ad units at the top of the page (above-the-fold) are always the most sought after, and those are the ones you will get paid the most for.
Depending on the ad placement in relation to the page, the industry has come up with special names for these ads, such as billboard, leaderboard, and sidebar.