The Ad Network pricing model is similar to that of traditional digital advertising. Below are a few examples on how Ad Networks work with the clients with the right pricing model in order to effectively hit their KPIs.
CPM (Cost per Mille or Cost per Thousand): The advertiser is charged a fee for every thousand impressions their advertisement receives.
vCPM (Viewable Cost per Mille): This pricing model is relatively new to the industry and charges based on whether an ad had the opportunity to be seen by the user, as opposed to the number of times it’s placed by the seller. The standard CPM tracks cost per thousand impressions, while vCPM tracks cost for per thousand impressions that are in-view or “viewable.”
The IAB defines display ads as “viewable” only if a user was exposed to more than 50% of the ad for longer than 1 second. For video ads, viewability is determined by more than 50% of the ad being displayed for longer than 2 seconds.
CPC (Cost per Click): The advertiser is charged based on strictly the number of clicks that their ads receive. With CPC, the number of times an ad is displayed is irrelevant to how much an advertiser pays.
CPA (Cost per Acquisition): The advertiser is charged each time a user clicks through and completes a specific action, like completing a purchase or signing up for an email.