We’ve heard of various advertising models, the ultimate goal of each being to maximize the response rate. Ad networks are always working towards getting creative models to enhance the revenues for their publishers.
One recent strategy employed by ZestADZ is the CPC with Banner model. It is the traditional CPC model, which is cost per click, where in the advertiser, pays for the no. of clicks generated, to the ad-network and the publisher, combined with pictures. An ordinary text link would take you to a landing page based on the interest that the text can generate from the user, and average CTR on a CPC is around 1%.
In the case of a CPC banner, the usage of a picture (banner) , enhances the attractiveness of the link and encourages the user to click on it thereby increasing the CTR. The pricing however is still CPC but this works out to be of great value to all stake holders involved – publisher- because he gets paid more due to better CPC, advertiser – because he gets better revenues and us because it fetches better ROI for every CPM of traffic through our network.
Given below is a case study with some comparative stats. on traditional CPCs’ and CPC with banners
Thus from the above data, we can see the increase in the CTR (by almost 100%). An increase in CTR leads to increase in revenues and eCPM which is the standard used to measure the effectiveness of any ad. Business model by publishers.
Authored by the Publisher Team @ ZestADZ