Online Advertising Revenue Sharing Models You Should Know

As the name suggest, online advertising is a form of promotion uses the Internet as a media to deliver marketing messages to attract customers. One major benefit of online advertising is immediate publishing of information and content that is not limited by geography or time (or vice versa, ads can be set to only shown to local or regional audiences, known as geotargeting). Another major benefit of online advertising is it allows more customization of advertisements.

Common examples of online advertising are paid results section (contextual ads) on search engine results pages, text ads unit, banner ads unit, rich media ads, social network ads, advertising networks (ad network), and e-mail marketing.

The most interesting thing about many contemporary online advertising models, it allows individual publishers (bloggers and small site owners) to get involved to the system by sign up to any ad networks. Ad network is online advertising program that give site owners (publishers) advertising revenue from each page on their website with a minimal investment in time and no additional resources. The ad network delivers text and image ads that are targeted to the site and site content.

Below are common revenue sharing models supported by major online advertising network companies:

CPM (Cost Per Mille)

The "Mille" in the acronym is taken from the Roman numeral system for one thousand. CPM - also known as "Cost Per Thousand impressions" - means advertisers pay for exposure of their message to a specific audience per thousand impressions or loads of an advertisement. However, some impressions may not be counted, such as a reload or internal user (site's owner) action.

CPC (Cost Per Click), a.k.a PPC (Pay Per Click)

Advertisers pay each time a user clicks on their listing and is redirected to their website/landing page. Along with CPM, CPC revenue scheme widely supported by major ad networks, including Google AdSense, AdBrite, BidVertiser, and more.

CPA (Cost Per Action)

Cost per action also known as Cost Per Acquisition. CPA payment scheme is common in affiliate marketing business. In this scheme, the advertiser pays the publisher only for the amount of users who complete a desired action, such as a purchasing promoted products or registering for a newsletter.

Cost per conversion

The definition of "Conversion" may varies. It sometimes considered to be a lead, a sale, or a purchase. The cost of acquiring a customer typically calculated by dividing the total cost of an ad campaign by the number of conversions.

CPV (Cost Per Visitor)

CPV is a payment scheme where advertisers pay for the delivery of a targeted visitor to the advertisers website.
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If You have websites or blogs, You can maximize your revenue potential by displaying third party ads from ad networks on your sites. Google AdSense is "a must" for publisher, since Google controls estimated 69% of the PPC online advertising market through AdSense and search results ads. They also have a sophisticated technology to puts most relevant CPC and CPM ads that will generate the maximum revenue for publishers. As AdSense alternative, You can also try other PPC programs such as AdBrite, BidVertiser, Kontera, Infolinks, and many more choices available.

If You prefer to try affiliate marketing system based on CPA revenue sharing model, major affiliate companies like Amazon, Commission Junction and eBay may give the best result for you.