CPM, CPC, CPA (For Publishers)... Am I Understanding These Right? And Need Some Advice for Display AD Monetization

[Nonbeardedman]

I've read and watched a bunch of guides on CPM, CPC, and CPA ads and I'm still confused about the differences between them. Mainly I guess it's because most of the resources I've found online seem to talk about it from the advertiser's perspective rather than the publisher/content creator/blogger's perspective.

For the case study site, I've been thinking of removing Ezoic ads from my site, basically getting my whole site off ezoic and removing display ads. I'm mostly doing this because:

1. Ezoic gives zero control over the ads
2. Ezoic seems to think of their "Super-intelligent" AI as some God who can do no wrong
3. Display Ads, depsite making me some money, don't seem to be working well with my niche/audience

I can explain a bit of the above if ya'll want but for now, I'm not against display ads in general, but I'm trying to change my strategy towards it. But to do that, I gotta first understand the options I'm working.

Here's how I believe each display ad model works (I'll also be relating it to the AIDA principle, Color Key: Awareness, Interest, Desire, Action):

CPM (Cost-per-mille):

Reader searches query > reader lands on my article > reader views ad > I get paid

CPC (Cost-per-click):

Reader searches query > reader lands on my article > reader views ad > reader clicks on ad > I get paid

CPA (Cost-per-action):

Reader searches query > reader lands on my article > reader views ad > reader clicks on ad > reader views merchant's product > Reader learns about the product > Reader buys the product > I get paid

Now, I'm also aware that for CPA models, it's not necessary that you get paid only when the reader buys a product, but it can also be for things like if they sign-up for a trial, or fill a form, etc. But I'm thinking of removing the Ezoic display ads (CPM model) and replacing them with Affiliate ads/creatives provided by my current affiliate networks (CPA model). When the reader clicks on that ad, goes to the merchant's site and buys their product, I get paid a commission.

Some concerns I have are:

• Is this really how the CPA model works or am I missing something?
• Has anyone found success in this type of ad monetization (couldn't find any online research/case studies)
• Do I also get paid for impressions/clicks I get on these CPA ads as well or is it just for when the person completes the action that I get a commission
• Does the same rate of commission apply as selling the products through affiliate text links

I would also love to hear about some of you guys who might've tried this and could offer some insights. I know that some may argue that Display ads don't have an impact on affiliate earnings, but from what I've seen in my niche/for my website is that whenever I turn down Ezoic ads from "Revenue-optimized" to "Standard" or "UX optimized" my affiliate earnings go up... so I don't know if that's a repeated coincidence or there's some correaltion - I though think the latter.

 

[Ryuzaki]

Is this really how the CPA model works or am I missing something?

More or less. It's simply Cost-Per-Acquisition, which only means one thing, but how you get to that point is what varies. You could run Pay-Per-Call ads on the Google SERPs and it would still have a CPA associated with it. And yeah, from the publisher's side it's basically lead generation of any type, from Email & Zip submits to them picking up the phone or requesting a packet of information. There's so many ways it's done.

Has anyone found success in this type of ad monetization (couldn't find any online research/case studies)

I'd say this is the classic model for internet marketers. The winds of change blow and the easy target moves around. For a while it was the "mass publishing with CPM display ads" which is on it's way out as the golden goose. At one point it was "exact match domain CPC farming on micro-sites".

What never went away was the classic CPA model though more often than not it receded into the shadows and became more and more seedy and full of arbitrage and cloaking and all that.

I used to do Pay Per Call to decent success before Google stepped in to manually hurt the "rehab" SERPs and block rehab ads in Adwords (to this day), though you can do it in the USA if you jump through some certification hoops which nobody seems to do. But yeah, basically any affiliate website that doesn't include display ads is an example of this.

Do I also get paid for impressions/clicks I get on these CPA ads as well or is it just for when the person completes the action that I get a commission

In the same way that advertisers talk about CPM (cost per mille) and publishers talk about RPM (revenue per mille), you're only getting paid when the part that comes after "cost per" happens. So in this case, there's parameters for what an acquisition means, and you only get credited for it in your account when it happens. For higher dollar offers, it's often times after your manager reviews the data, call, emails, and after the quality of the lead is proven, and even then maybe 30 more days for that lead to "mature" or whatever.

They do this to create an artificial float of cash for themselves, to keep themselves from being defrauded, and to be frank, to shave some of your leads. Many times these networks are double and triple brokering the offers so their ROI's are already so slim, and shaving by X% is standard to cover X% of fraud. It sucks but it's how it goes.

I know that some may argue that Display ads don't have an impact on affiliate earnings

This has been the case for me on multiple websites and has never not been the case for me.

But I'm thinking of removing the Ezoic display ads (CPM model) and replacing them with Affiliate ads/creatives provided by my current affiliate networks (CPA model). When the reader clicks on that ad, goes to the merchant's site and buys their product, I get paid a commission.

The problem with this kind of approach (as I'm picturing it in my head from the old days) is that there's no pre-selling. There's maybe luke-warm traffic but it's not hot. What I'm referring to is having a website about SEO. Maybe you're a blogger/guru and you slap banners in your sidebar or through your content (any content) but you aren't directly talking about those products.

You might get some sales, but it'll be nothing like ranking for the "best _____" and "____ reviews" type of keywords, which brings in mega-hot traffic. We know this works fantastically. Slapping random banners around won't work that well. I don't mean to imply that's your intention. I just wanted to point out to the reader how low the conversion rates will drop.

Another thing to watch out for are these "lifetime commissions". It's never true. It might be true for a little while but they always get canceled. I think Ezoic themselves just pulled this stunt recently. All companies go through highs and lows, and a low will come, and they will claw back money by not paying affiliates.

 

[Nonbeardedman]

Okay although I can cherry-pick some of the valuable pointers you've given here, I'm still left directionless with where to go with my display ad monetization. So I guess I need to better present my strategy here...

The problem with this kind of approach (as I'm picturing it in my head from the old days) is that there's no pre-selling. There's maybe luke-warm traffic but it's not hot. What I'm referring to is having a website about SEO. Maybe you're a blogger/guru and you slap banners in your sidebar or through your content (any content) but you aren't directly talking about those products.

So, with this I get what you're saying, but I won't be adding affiliate banners/ads throughout the site at random. Firstly, the places where I plan to add ads is:

• The sidebar
• Header
• End of content
• In-between content (Max. 2-3 ads with a substantial gap in-between)

What I've planned to do is get a WordPress plugin that allows me to build custom sidebar widgets and then use that sidebar for certain posts. For example, if I have a site on toasters, I won't be adding affiliate ads on my "best toasters for 2023" page, cuz that traffic is already in the buying mood and are willing to buy from the links/buttons.

But for pages like "10 Best foods to serve with toast" I might add a relevant sticky affiliate ad in the sidebar. This could be an ad for something like a cooking course or a kitchen product that may indirectly related to the article their reading (Like if I talk about serving butter with toast, the ad might be for a butter churning machine)

Although the traffic is luke-warm and not really in the buying mood, The reason I think this works is because it may be something "they didn't know they needed." Also, because most of the affiliate networks I'm with, tend to offer frequent discounts, so even if the customer isn't currently in the buying mood they might look at that "FLAT 50% OFF on ALL Kitchen Products till 20th October" ad and be more inclined to buy it.

Oh and I'll be placing these ads manually and they'll only be added if they're relevant otherwise I'd rather add an email sign-up form in the sidebar.

And, I'll be echoing this strategy for the other ad types (header, in-between, end of content)

You might get some sales, but it'll be nothing like ranking for the "best _____" and "____ reviews" type of keywords, which brings in mega-hot traffic. We know this works fantastically. Slapping random banners around won't work that well. I don't mean to imply that's your intention. I just wanted to point out to the reader how low the conversion rates will drop.

I'm writing best of reviews type posts and would continue writing those, I don't intend on replacing them with the affiliate ads. I intend to replace my current Ezoic Ads with these affiliate ads. What I'm trying to justify is what would provide me more benefit - the income gained from Ezoic ad impressions or the income gained from these CPA ads.