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Are you planning to start your adventure with online advertising soon? Then it’s high time to learn about the most important models by which online advertising campaigns are billed. You can dress up in billing models. This way your marketing decisions will be more informed, and the type of payment will be fully adapted to your current needs. So it’s time to learn about the most popular online advertising billing models!
PPC (pay per click)
Pay per click (PPC), hardly needs to be introduced to anyone. It is one of the most common billing systems – giants such as Google Ads and Meta Ads, among others, rely on it. Under PPC, an advertiser pays for each time a user clicks on an ad. In this way, your marketing budget is used efficiently, as you pay to gain real interest from your audience. On the other hand, you have to reckon that in industries with a high level of competition, the cost per click can be quite high. However, it is still an investment with a good rate of return. PPC is great for a campaign aimed at attracting traffic to a website and generating conversions.
PPV (pay per view)
Pay per view (PPV) is a model in which the advertiser pays for each display of an ad. This method of billing can often be encountered in campaigns using video content and in the case of display ads, e.g. on a website or in an app. PPV is worth betting on if you want to quickly and effectively increase brand recognition and awareness. This is because with this model you have the opportunity to reach a wide audience. Remember, however, that you are paying for the displays, even if they do not bring you immediate effects in the form of, for example, increased sales.
PPL (pay per lead)
In the case of the pay per lead (PPL) model, payment is charged only for the obtained leads, i.e. specific contact details of potential customers (e.g. e-mail address, phone number) or their expression of willingness to establish contact. This is an effective model especially for companies that want to generate customer databases with the potential to start cooperation or finalize a purchase. The advantage of this solution is that you only pay for specific data and receive access to valuable information about your potential customers. However, you can never be sure whether the obtained leads will ultimately translate into using your offer.
PPS (pay per sale)
When choosing the pay per sale (PPS) model, you pay only after making a sale. The fee can be fixed for each transaction or a percentage of the purchase amount. This method of settlement is often used in affiliate marketing and in campaigns whose main goal is to increase sales. As part of PPS, the advertiser can count on a high return on investment. In addition, they only pay for real results, which allows for increased efficiency in using the budget for marketing purposes. You should expect quite high sales commissions.
PPA (pay per action)
Pay per action (PPA) is a payment model in which the advertiser pays for a specific action taken by the user. Such an action can be a purchase, registration on the website, newsletter subscription or filling out a form. This model works well for companies that care about achieving specific results from advertising campaigns. Its advantages include payments only for specific effects, the ability to easily measure results and considerable flexibility. However, the challenge may be precise tracking of conversions and the fact that not every platform allows for PPA payment.
PPE (pay per engagement)
Pay per engagement (PPE) is similar to PPA at first glance, in that the advertiser pays for user engagement. However, in the case of PPE, the payments are based on the overall interaction with the ad, such as liking or sharing a post, rather than specific actions, such as a purchase or subscription. This is a good solution if you want to engage users, build relationships with them, and increase brand recognition. However, in the case of PPE, it is difficult to measure the direct conversion from engagement, which can lead to paying for low-quality interactions.
PPM (pay per mille)
Pay per mille (PPM) is a model in which the advertiser pays for every thousand views of the ad. This is a popular model in the previously mentioned display and video campaigns, especially if the brand is already known and has the ability to reach a very wide audience. Campaigns billed according to PPM usually have a fairly large reach and help build brand awareness. However, they can be problematic in terms of measuring direct conversion. You also have no certainty that the views will translate into specific actions, such as using your offer.
The Devispace team can help you create a marketing strategy that will soon have you conquering the skies of the Internet. We will be happy to take care of not only optimizing your advertising activities, but also creating an effective visual identity and designing a website. Take the first step towards success and contact us now!
