Friday, January 25, 2008


Over the years Internet Advertisement has witness tremendous growth with more and more advertisers jumping into the fray. Online ad models like the CPM (Cost Per Thousand Impressions), and CPC (Cost Per Click) becomes a huge hit among millions of advertisers. However, along with the guaranteed benefits, there are certain risks still in question with these models.

First it was the CPM model that draws the attention of the advertising community. The model is a great tool to obtain certain predefined amount of clicks, but the guarantee of actual conversion is undefined and advertisers are at their own risk.

Again the reigning CPC model, which brings unlimited amount of clicks have earned tremendous success in the online ad market. But then it also involves certain risks. Even though the advertisers have the freedom to choose and compare their bids for better conversion results, the click fraud issue is a major concern here. Effective measures have been implemented by major search Engines to curb this issue, but advertisers are still open to the click fraud harm.

The CPA (Cost Per Acquisition) model, however, seems to offer the best guarantee for advertisers. It offers the advantage of getting clicks that really converts. Also there is no click fraud risk involved here as the advertisers have to pay only for those clicks that return value for their ads. So for the advertisers the CPA model seems to be a better option in terms of curbing unnecessary ad spends while making sure that ads were being displayed only when they are most likely to convert.


Anonymous said...

Hi !

I'm Neil,your article on CPA, CPC and CPM is really informative. Thanks

Anonymous said...

Valuable infos