Understanding Google Adsense

By Author: Anthea Johnson
Total Articles: 48
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Online marketing is much more effective than the traditional marketing. The benefits are quite obvious. Online marketing cover more number of prospective customers in less time and with little cost and resources. Online marketing is a very innovative and attractive way of promoting a brand or a brand product. There are a number of variants and innovative ways through which advertising can be done in a very attractive and interactive ways like with the help of web banners, search engine marketing, social media marketing and email marketing.

The compensation for the ads is also done in various standards or scales depending upon the success of the online advertising.

Fortunately, rating the success of the campaigning through a online marketing plan is much easier than the traditional way of marketing. There are many software and online tools which can give exact number of visitors who visited the website over a period of time, how many of them clicked on the ad and interacted with it in anyway and how many of them actually went for pursuing the product. All this becomes very simple in online marketing.

Getting ...
... the numbers help in deciding the compensation to the advertising agency in a fair way. For this purpose many methods are there which are used as per consent and considerations based on number of visits, number of clicks and number of purchases. These compensation methods will be discussed briefly.

Types of compensation methods

Ad servers for publishersCost per action (CPA): This method is based on the compensation by the brand to the advertiser when a viewer of the online advertisement interacts with the advertisement and initiates a desired action like buying a product, filling up of survey form, undergoing a registration, etc. Sometimes, the agreement may include some revenue sharing also. CPA is in favor of the brands as risk of any unsuccessful venture falls by the side of the advertiser.
Cost per engagement (CPE): As per CPE, an advertiser is compensated if the advertisement is loaded on the website and the user interacts with the advertisement in one or the other way.
Cost per mile (CPM): The number of visitors made acquaint with the advertisement is the standard for payment here. Payment is made for every 1000 users who access the advertisement.
Fixed cost: Fixed cost compensation is simple. The brand pays the publisher a predetermined amount of compensation irrespective of the efficiency and success of the campaign.
Cost per click (CPC): As the name says, compensation is made in this method only if the user interacts with the advertisement by clicking on the advertisement.
Cost per view (CPV): This is applicable only for video advertisements. Compensation is made for every view of the advertisement video.

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