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Should I Be Focused on CPC, CPM, CPA or a Mix?

by AdPublisher
11 replies
I'm currently in charge of managing the display advertising team at a relatively new social media website. We have approximately 1 million monthly active users (MAU) with 35-45% US traffic and growing fast. Because we are a new website I have only been able to find CPA affiliates to promote through the likes of CJ, ClickBank, and JVZoo (upper management refuses to display traditional banner ads from ad networks). I want to attract advertisers to work with directly. Here's where I need your help: (1) how do I attract advertisers to my website, (2) how do I know which campaign to put them on (CPC vs CPM), and (3) what should I charge if I opt for a CPM or CPC model? Would love to hear your thoughts on how you'd go about it.

Thanks,
Chris
#cpa #cpc #cpm #focused #mix
  • Profile picture of the author Ron Reed
    Well, all I can say is split test, split test, split test! Listen to your gut for the first round of testing, and build from there by testing types of ads, placements, ad values, everything!
    Since you're such a big and more importantly up-and-coming website, it will all come down to finetuning everything.
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  • Profile picture of the author HairyPoppins
    (1) how do I attract advertisers to my website

    Be good to the ones you have and let the word of mouth get out. I should want to join your network you shouldn't be trying to convince me to join.
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  • Profile picture of the author ChrisBa
    Originally Posted by AdPublisher View Post

    I'm currently in charge of managing the display advertising team at a relatively new social media website. We have approximately 1 million monthly active users (MAU) with 35-45% US traffic and growing fast. Because we are a new website I have only been able to find CPA affiliates to promote through the likes of CJ, ClickBank, and JVZoo (upper management refuses to display traditional banner ads from ad networks). I want to attract advertisers to work with directly. Here's where I need your help: (1) how do I attract advertisers to my website, (2) how do I know which campaign to put them on (CPC vs CPM), and (3) what should I charge if I opt for a CPM or CPC model? Would love to hear your thoughts on how you'd go about it.

    Thanks,
    Chris
    You attract advertisers as the site grows larger and more popular, as for billing structure (CPC or CPM) that would be entirely up to you but you may find CPM is more of a "sure thing" for you getting paid. As for what to charge its impossible to say - take into account the site size, demographics, age, quality, number of advertisers, etc
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    • Profile picture of the author AdPublisher
      Originally Posted by ChrisBa View Post

      You attract advertisers as the site grows larger and more popular, as for billing structure (CPC or CPM) that would be entirely up to you but you may find CPM is more of a "sure thing" for you getting paid. As for what to charge its impossible to say - take into account the site size, demographics, age, quality, number of advertisers, etc
      Thanks for your input. I've always been a fan of CPM campaigns for the same reasons you stated. My CEO is emphasizing the use of CPC campaigns since we have a "higher than average" CTR but I'm not so sure he understands that from an advertiser's perspective that it's about conversion rate and not click rate.
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  • Profile picture of the author pacelattin
    Then you screwed. Any major site depends on 70% of their unsold inventory going to ad networks. If you don't want to work with display networks, you are basically going to never monetize the space.

    Originally Posted by AdPublisher View Post

    (upper management refuses to display traditional banner ads from ad networks).
    Thanks,
    Chris
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    • Profile picture of the author AdPublisher
      I agree with you but I guess I should have been more clear... we are willing to work with display networks as long as the ads appear in a particular format, very similar to Facebook ads with an image and text. Management doesn't want to go the route of showing traditional image banner ads so we built an internal ad server to meet our desired format. I'm not positive but I believe the reason to go that route has something to do with the increased performance Facebook saw when they introduced sponsored story ads. If I had it my way I would contract the SSPs to manage my inventory and show whatever banners they want.
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  • Profile picture of the author Haris Tahic
    Go with CPA. People are scared to go with CPM or CPC.
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    • Profile picture of the author MTVida
      To attract more advertisers, you might think about setting up an affiliate program. It can be a great way to get your advertiser promoting your site through their other channels, and advertisers LOVE the idea of earning recurring commissions!
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      • Profile picture of the author AdPublisher
        Originally Posted by MTVida View Post

        To attract more advertisers, you might think about setting up an affiliate program. It can be a great way to get your advertiser promoting your site through their other channels, and advertisers LOVE the idea of earning recurring commissions!
        That's a great idea that I have been tossing around lately. I'm leaning towards waiting a month or so to create an affiliate program until I truly understand my traffic and what products/services my users would be most interested in. I'd hate to sell all of my inventory to affiliates that don't convert with my traffic
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  • Profile picture of the author zeekr
    I guess it doesn't matter how they pay, what you need to be focusing on is getting the best possible eCPM for you (more) and your advertisers (less). Happy advertisers means repeated business. They need the clicks, but there's also branding so it all comes down to finding the right balance for both and figure things out from the CPA piece of the equation.
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  • Profile picture of the author nickdamodda
    What's the website? Want to check it out
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