Online marketing strategies of services and products extensively utilize a mixture of auctions, direct sales, and affiliate systems. It’s a popular strategy for marketing that involves 4 actors or elements.
First off, it involves a merchant or seller who wants to enhance the sales of the services/products. Second, there’s a network of blogs, websites, or e-mail marketing platforms which hosts the promotional contents associated with the same. Also, these systems involve an affiliate, somebody who joins the network and performs the promotional tasks.
Finally, the system involves a customer, who, by the affiliate is redirected/directed to a suitable website or sales page and completes a purchase. Throughout this method, the following include the essentials:
• A buyer receives his desired item
• A seller makes a profit through a sale
• Affiliate makes a commission by acting like a sales agent within the process
Compensation Methods Included
Current trends in affiliate systems involve some or all the following compensation techniques:
PPC (pay-per-click): An affiliate hosts banner advertisements on his blog/website and draws customers to click the advertisements. For every click of a visitor, the affiliate gets paid. The affiliate system has a high risk as a visitor ultimately may wind up doing nothing after a click.
PPS (pay-per-sales): This compensation technique within the affiliate system will require a redirected visitor to become converted as a buyer and purchase something (product or service).
SEO (search engine optimization) An affiliate displays search engine optimization contents on websites in which traffic is generated using search engine results.
CPM (cost-per-mille): Within this technique an affiliate system will rely upon a ‘thousand page/advertisement view’. An affiliate will earn certain revenue by generating one thousand page views of an advertisement on a webpage. Thousand page views will mean 1,000 visitors or amount of visitors viewing an advertisement for 1,000 times. The technique possesses a high probability of converting visitors to buyers.
If you’re interested in earning money with CPM advertisements here are two CPM ad programs to consider:
• CPX interactive: An advertisement network providing ads within various sizes and kinds of ads such as leader board (728 x 90), banner (468 x 60), pop-ups, skyscraper, etc. You may choose the one that is appropriate for your needs and combine with your blog layout. The minimum payout is NET 30, $50; they have 60 percent payout percentage.
• Burst Media: They just approve blogs that have 25,000 month-to-month page views or 5,000 month-to-month unique views. Burst Media provides various advertising formats such as leader boards, scroll banners, pop-ups, and skyscrapers of different sizes. The minimum payout is $50 and the platform pays through PayPal or check.
Advantages of CPM
CPM includes a clearly defined metric based on page views and easily is understood by decision makers. If an individual’s objective includes branding to a broad audience, CPM is a great metric as far as how many aggregate consumers you might’ve reached. While reporting to management, setting up a baseline CPM level will make it simple to compare your spend against broadcast, radio, and direct mail. As display advertising continually changes, most companies still rely on CPM pricing.
Disadvantages of CPM
In an age in which marketers are held accountable for every last dollar spent, such models do not reflect the intricate information of target audiences. This metric does not cope with abrupt increases in use which boost page views yet possess a decline in attention spans, too – the bottom line is that not every ad view possesses the same worth. For this reason, advertisers must frequently observe their traffic sources, ad consumption, and usage levels, to check how the campaigns are doing.
However, instead of merely paying for placement, modern-day advertising will rely on cultivating an audience via conversational marketing. You wish to have the ability to target a bespoke and creative message to the proper people and extending a campaign in order to seed your product, idea, or brand over a period of time. While solely pricing campaigns that are based on impressions, the audience engagement metric will be missing from the equation.