209. Online Advertising › how it works › how to pay: payment models for display advertising CPC CPC stands for cost per click. This means the advertiser only pays when their advert is clicked on by an interested party, regardless of how many times it was viewed. CPC advertising is normally associated with paid search marketing, also called pay per click (PPC) advertising. Banners can be priced this way when the aim is to drive traffic. It is also a payment method sometimes used in affiliate marketing, when the aim is to drive traffic to a new website. CPA CPA refers to cost per acquisition. This model means the advertiser only pays when an advert delivers an acquisition. Definitions of acquisitions vary from site to site and campaign to campaign. It may be a user filling in a form, downloading a file or buying a product. CPA is the best way for an advertiser to pay because they only pay when the advertising has met its goal. For this reason it is also the worst type for the publisher, as they are only rewarded if the advertising is successful. The publisher has to rely on the conversion rate of the advertiser’s website, something which the publisher cannot control. The CPA model is not commonly used for banner advertising and is generally associated with affiliate marketing. Flat Rate or Sponsorships Sometimes owners of lower-traffic sites choose to sell banner space at a flat rate i.e. at a fixed cost per month, regardless of the amount of traffic or impressions. This would appeal to a media buyer who may be testing an online campaign that targets niche markets. There are several variations to what a sponsorship on a website entails. Examples include exclusive adverts on all the pages and slots of a specific page, newsletter, or section, and sponsoring content. Sponsorship means that no other advertiser will appear in that section. Sponsorships are often difficult to measure and are mostly used to raise brand awareness. Cost Per Interaction With this model, advertisers pay for rollover adverts, normally placed in videos discussion or applications (such as Facebook applications), and based on the interactions The word “engagement” with that advert. An interaction, sometimes referred to as an engagement, is implies a level of interaction and intent generally defined as a user-initiated rollover (or mouseover) action that results from the user. If you in a sustained advert expansion. Once expanded, an advert may contain a video, were using this type of game, or other rich content. It happens without taking an Internet user away advertising, how would from her preferred web page, and marketers only pay when an individual you measure success? completes an action.206