There are many ways to manage advertising space on a website or blog, each with pros and cons.
Adsense (Pay Per Click)
Google Adsense gave new life to the online advertising market and especially to Pay Per Click (PPC). As the name suggests, with pay per click you are paid when a user clicks on your advertisement. After the click, the user is redirected to the advertiser’s web page, which usually sells and promotes products or services.
Today, Adsense is the most popular PPC program to the point of being almost synonymous with PPC, not only because Google is good at getting publicity and has many advertisers, but also because the distribution system of contextual ads is unique among competitors.
Pro Pay Per Click:
■ Easy to implement: just insert the Adsense code into the pages and Google will send itself to the most relevant ads
■ Selling with PPC is easy to implement and fast.
■ Earnings are very passive and long lasting and unlike other programs, you can just add some Adsense code into a page and earn. Among other things, once a page has stabilized Google ads continue to renew, maintaining consistent income.
■ Selling budgets are easy to manage and the analytics allow very thorough keyword research.
Cons of PPC:
■ It is not so profitable with Adsense, you can earn so much if you have bigger sites, but soon you realize that Adsense cannot be the main livelihood of your sites because it does not make enough money. With other programs, such as Pay Per Lead and Pay-Per-Sale, you can do much more.
■ Selling with PPC is basically the art of paying for something that website optimization does for free.
Pay Per View (aka Pay Per Impression)
With this method of earning, webmasters are cashing in when the user sees the banner or page. These programs today do not enjoy much luck, because hardly any users that look at a banner then turn into a customer. Despite this fact, there is still a small market for PPV.
Pro’s Pay Per View
■ Suitable for sites that Adsense wont supply. These tend to be sites of a dubious nature such as adult material or file sharing sites. The advertiser that chooses the Pay Per View it is not always very interested in being paid by a company that is ethically upstanding.
■ Selling via PPV is ideal if you have a website or marketing strategy that would get you kicked off any other sites.
Cons of Pay Per View
■ Meager earnings, they speak of fractions of a cent per view.
■ Selling legitimately via PPV is hard because it is often only the more dubious sites that run PPV hosting space.
■ Few advertisers: with a few advertisers sometimes, you do not have ads to display and so have nothing to gain.
■ Selling with PPV costs a lot for a little. Even if you pay 0.5c per view, a file-sharing site can get up to a quarter of a million hits in one day. Few of them however are liable to buy from you.
■ Bad user experience: pay per impression programs make use of various methods that are very poorly viewed by the user, such as Pop Up ads and Frames.
Pay Per Lead (aka Cost per Action) and Pay Per Sale.
This section covers PPL and PPS, because PPL quite easily converts into PPS if you simply make the action page the checkout or payment page. However, just to make it clear, the PPS system is exactly the same as PPL, but you only get charged (seller) or paid (host site) if the customer goes all the way through the checkout and pays.
With Pay Per Lead you will be paid when the user performs a certain action on the advertiser’s site. The action in 99% of cases is the compilation of a form, such as a sign up form, or contact form (this is why it is called a lead). Selling via PPL is the hardest medium to qualify for, but allows the biggest pushes for online sales if you are a small company.
Pro Pay Per Lead / PPS
■ Commissions on Pay Per Lead widely, from 30 cents to more than $20. Everything depends on the market. If the sellers are getting sales through your adverts, they will pay silly amounts of money per PPL.
■ Selling with PPL is great if you only agree to pay every time somebody hits your payment screen, i.e. they have bought something, and then you can pick higher click costs, safe in the knowledge that you can factor the fee into your sale price.
■ It is more manageable, unlike Pay Per Click, which all depends on your skill.
■ Selling is great if a user clicks the advert, does not buy (action) but then returns later via a different route such as adding you to their favorites bar. You then get the sale without paying the fee.
Cons of Pay Per Lead / PPS
■ It requires work and maintenance. When you create a web page to promote a Pay Per Lead program, you will frequently have to fix it properly because schedules change, close or renew. Pages and their content and traffic they attract need a very specific description and proof of its achievement.
■ Selling can go rotten If a user reaches the action page (preferably the checkout or payment page) and then opt out of the same such as by clicking back or clicking away, you will still be charged for the action.
■ There are few programs that allow webmasters to host PPL. There are a few in United States but otherwise its good luck chuck (nothing).
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