May
When To Use CPM Ads, When To Choose CPA
If you’re a relatively new webmaster, you may be wondering how to monetize your site. That’s a big topic and you should definitely spend some time on it (although, if you were smart, you would have a monetization strategy already in place once you have a business plan.)
But I’m not here to school you on the importance of having some sort of plan before you dive in headfirst. What I am here to do is make fun of the ignorant people who dive in without a plan and then bitch and moan about how things aren’t working out
What I’m seeing is that webmasters are complaining about CPA ads. They say things like “I deserve to be paid for placing the ad” and “I have a great website so I should be raking in the big bucks, not stuck only getting paid for leads.”
Some dude in a webmaster forum got up on his soap box and proclaimed that CPA ads are cheating webmasters, and that we should stand up and revolt, settling for nothing less than CPM ads. The rant was followed up with highly relevant nonsense such as comparisons to ads in print newspapers! (Gee, newspaper ads are priced differently than internet ads? Who’d a thunk it?!)
Lastly, they said CPA ads were good for nothing more than those shady landing pages with no value.
If I had to guess, this dude probably just got scammed out of $47 when he bought the “How to Make Gajillions of Dollars Overnight with CPA Ads” ebook and needed to vent.
But let’s look at it. When should you choose CPM ads, and when should you choose CPA ads?
What Are CPM and CPA Ads?

CPM ads are typically big banner ads and you get paid each time the banner is viewed on your site. The above 728×90 banner ad is a CPM ad for Domino’s Pizza, served through CPX Interactive. (See it on LiquidGeneration.com.)

CPA ads pay you per lead. That means a visitor has to click the link or banner and then fill out a form before you earn any money.
The above screenshot shows a text link and banner ad for one of the many acai berry offers. (Seems the banner is served by MaxBounty.)
*Note that most of these acai berry trial offers are scams and should be avoided. But it makes for a wonderful example of a CPA ad.
When to Use CPM, When to Use CPA
Let’s compare these two types of ads for different websites.
For example, say you have a huge website with lots of general traffic. We’re talking a site like CollegeHumor.com or even YouTube.com. Let’s say your site gets 300,000 page views per month (leading to 300,000 impressions on your banner ad.)
And let’s assume you get paid $1.00 CPM. That makes your monthly earnings $300.
But for the next example, say you have a small website that gets a mere 500 visits and 1,000 page views per month. Even if you were accepted for a CPM ad network, you’d earn a whopping $1 per month. Let’s face it – one item from the McDonald’s Dollar Menu won’t feed you for a month.
Good news – this small site isn’t a crappy landing page. It’s actually a quality, informative site, but it serves a very small niche. You have numerous #1 spots in Google SERPS, but there’s just not much traffic out there.
Despite how terrible CPM would be for you, it’s your lucky day! There’s a fancy doo-dad for this niche that you can advertise on your site and get paid $2.50 per lead, thanks to their CPA program. So you promote that, and out of those 500 visitors, you get five to buy. (Not hard considering how focused your site is.)
That’s $12.50 from CPA vs $1 from CPM.
Which is better, CPM or CPA?
So really, which is better? As I just showed you, it depends on the site.
CPM ads work great if you have a high-traffic site that attracts a general audience with varying interests. CPA ads work great if you have a tightly-focused niche site, since those sites attract a low quantity of high quality visitors.
If you’re using CPA ads on a CPM-type site, it’s no ones fault but your own. Quit whining and do something about it. You need to test both options and see what works.
Worst case scenario, you lose out on a day, week, or month worth of earnings if you choose the wrong method. But the knowledge you gain is invaluable.
*I didn’t even include CPC ads because that’s best for when you half-ass a website that’s not targeted enough for CPA and not big enough for CPM.
Let me repeat: Quit crying about your low income and test out some new ads for your site.



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