party pays.
4
Affiliate revenue (CPA, but could be CPC). Affiliate revenue is commission‑ based,
for example I display Amazon books on my site SmartInsights.com and receive around
5% of the cover price as a fee from Amazon. Such an arrangement is sometimes known
as
cost- per- acquisition
(CPA)
. Increasingly, this approach is replacing CPM or CPC
approaches where the advertiser has more negotiating power. For example, manufac‑
turing company Unilever negotiates CPA deals with online publishers where it is paid
for every email address captured by a campaign rather than a traditional CPM deal.
However, it depends on the power of the publisher, who will often receive more revenue
overall for CPM deals. After all, the publisher cannot influence the quality of the ad crea‑
tive or the incentivisation to click which will affect the clickthrough rate and so earnings
from the ad.
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