6 Ad Revenue Models Compared: 2024 Guide

Looking to monetize your digital content in 2024? Here's a quick rundown of 6 popular ad revenue models:

CPM (Cost Per Thousand Views): Pay for eyeballs, great for brand awareness
CPC (Cost Per Click): Pay when users engage, ideal for driving traffic
CPA (Cost Per Action): Pay for results, perfect for sales-focused campaigns
CPL (Cost Per Lead): Pay for potential customers, best for lead generation
CPV (Cost Per View): Pay for video views, excellent for brand storytelling
CPI (Cost Per Install): Pay for app installs, tailored for mobile app marketing

Quick Comparison:

Model	Best For	Typical Cost
CPM	Brand awareness	$1.90 - $6.40 per 1000 views
CPC	Traffic & engagement	$1.35 - $5.26 per click
CPA	Sales & conversions	$20 - $200 per action
CPL	Lead generation	$10 - $982 per lead
CPV	Video engagement	$0.05 - $0.50 per view
CPI	App installs	$0.34 - $5.28 per install

Choose based on your goals, audience, and industry. Mix models for best results. Keep an eye on privacy changes affecting digital ads in 2024.

1. CPM (Cost Per Thousand Views)

CPM is the OG of digital ad models. It's dead simple: you pay a set amount every time your ad pops up 1,000 times. Doesn't matter if anyone clicks or buys - you're paying for eyeballs.

Here's how it breaks down:

Say a website charges $5 CPM. You fork over $5 for every 1,000 ad views. So if your ad gets seen 50,000 times, you're out $250. Easy math.

CPM is perfect for brand awareness. Launching a new product? Need to make a splash in a new market? CPM's your guy. Big consumer brands love this stuff.

Now, how much can you expect to pay? It's all over the map. In 2023, average CPMs ranged from $1.90 for non-profits to $6.40 for tech companies. Social media? That's a whole other ballgame. Facebook's raking in $22.50 CPM for B2B ads.

Smart advertisers don't just count views. They're looking at:

Click-through rate: Are people actually engaging?
Brand lift: Is your brand sticking in people's minds?
Conversion rate: Are clicks turning into customers?

Here's a real-world example: In 2023, a food delivery app went all-in on CPM to boost awareness in new markets. They targeted mobile video ads, paying $7.63 CPM (top dollar in their industry). Result? 10 million impressions in two weeks and a 15% jump in app downloads.

"CPM often makes the most sense if your company is driven toward increasing awareness for your brand." - WebFX Team

Pro tip: Don't cheap out on CPM. A $2 CPM might look good on paper, but if it's hitting the wrong audience, you're just burning cash. Focus on quality impressions that reach your target crowd.

CPM in 2024 looks like this:

Platform	Average CPM
Facebook	$22.50
Instagram	$7.91
YouTube	$9.68
LinkedIn	$6.59
Twitter	$6.46

But remember, these are just averages. Your results may vary.

Is CPM perfect? Nope. It doesn't guarantee clicks or sales. But for getting your brand out there fast? It's tough to beat. Just make sure you've got killer creative and smart targeting to make those impressions count.

2. CPC (Cost Per Click)

CPC, or Cost Per Click, is an ad model where advertisers pay only when someone clicks their ad. It's perfect for businesses aiming to drive specific actions like website visits or sales.

Here's CPC in action:

You're running a campaign with a $2 CPC. 1,000 clicks? That's $2,000. But the real value comes when those clicks convert.

In 2023, average CPCs varied across platforms:

Platform	Average CPC
Google Ads	$2.32
Facebook Ads	$1.35
LinkedIn Ads	$5.26

These numbers show why B2B marketers love LinkedIn for targeting decision-makers, even with its higher cost.

Why CPC Matters Now

CPC is all about results. You only pay when users engage, making it a hit with ROI-focused advertisers. As Notion's CPO Akshay Kothari says:

"In today's digital landscape, every click counts. CPC allows us to directly tie our ad spend to user engagement, giving us a clear picture of our campaign's effectiveness."

Boost Your CPC Game

1. Quality Score Rules: Google Ads uses this to set your ad rank and cost. Boost your expected clickthrough rates, ad relevance, and landing page experience to lower your CPC.

2. Keyword Research is Key: Use tools like Google AdWords keyword suggestion to find valuable, low-competition keywords.

3. Ad Placement Counts: Where your ads show up matters. A well-placed ad can boost your CTR without hiking costs.

4. Go Mobile: With most traffic on mobile, make sure your ads and landing pages work great on phones.

Real-World Win

A SaaS startup launched a Google Ads CPC campaign in March 2023, targeting high-intent keywords. By focusing on ad quality and landing page optimization, they cut their CPC by 15% in three months while boosting conversions by 22%.

3. CPA (Cost Per Action)

CPA, or Cost Per Action, is the star player in performance marketing. Why? You only pay when someone does something specific - like signing up or buying.

It's all about results. No more paying for views or clicks. You're paying for actual conversions. That's why businesses obsessed with ROI love it.

Let's look at some numbers:

Industry	Average CPA
E-commerce	$20 - $65
SaaS	$40 - $150
Travel	$7 - $60
Finance	$40 - $200

These are just averages. Your results might be different.

CPA in the Real World

Hurom, a juicer brand, was struggling with high costs in March 2023. They switched to influencer marketing and rebranding. The result? They cut their CPA by 65% and boosted their Return on Ad Spend by 2.5x.

Genomelink faced similar issues. They turned to influencers too and slashed their CPA by 73%. These aren't just numbers - they're game-changers.

Why CPA Matters Now

In today's crowded digital world, CPA shows you exactly what you're getting for your money. It's not about clicks or views - it's about actions that push your business forward.

Akshay Kothari from Notion says:

"In today's digital landscape, every click counts. CPA allows us to directly tie our ad spend to user engagement, giving us a clear picture of our campaign's effectiveness."

Making the Most of CPA

Know Your Goal: What's a valuable action for your business? A sale? A sign-up? A download?
Crunch the Numbers: Figure out your average order value and customer lifetime value. These help you set a realistic CPA target.
Keep Improving: Your landing pages, ad copy, and targeting all affect your CPA. Keep testing and tweaking.
Use Video: Videos can bring more people to your site and lower your CPA. They're engaging and can explain complex stuff quickly.
Pick the Right Partners: If you're doing affiliate marketing, choose a CPA network that fits your goals. MaxBounty, for example, has over 2,000 active campaigns.

Remember, there's no one-size-fits-all "good" CPA. It depends on your industry, product, and goals. The key? Make sure your average revenue per user is higher than your marketing CPA.

In 2024, CPA is still a powerful tool for digital marketers. It's not about spending less - it's about spending smarter. By focusing on actions that really matter to your business, you can grow and get the most out of your marketing budget in ways other methods can't match.

4. CPL (Cost Per Lead)

Cost Per Lead (CPL) is a pricing model where you pay for qualified leads. It's the middle ground between paying for views and sales, making it popular for lead generation.

Here's how it works: You set a price for each lead and only pay when someone takes a specific action, like filling out a form or signing up for a newsletter. It's all about getting potential customers into your sales funnel.

Let's look at some numbers. CPL varies by industry:

Industry	Average CPL
Software & Technology	$60 - $120
Healthcare	$20 - $40
E-commerce	$10 - $30
Financial Services	$653
Higher Education	$982

These are just averages. Your actual CPL might be different. The key is knowing your numbers and setting a CPL that works for your business.

In 2023, a B2B SaaS company cut its CPL from $310 to $164 by focusing on organic channels. They put money into content marketing and SEO, which led to a 47% drop in lead costs over six months.

But here's the thing: CPL isn't just about cheap leads. It's about quality leads that convert. Zeke Domowski from Creatively Innovative says:

"Know your client's numbers. It is not all about you. It is about the relationship with them and helping them grow."

To make CPL work for you:

Define what a "lead" means for your business.
Figure out the maximum CPL you can afford based on your average order value and desired return.
Use tools to track your CPL across channels. Adjust your strategies based on what you find.
Focus on targeting and messaging to attract leads more likely to convert.
Keep testing your landing pages, ad copy, and offers to lower your CPL while keeping lead quality high.

A good CPL lets you get customers profitably. If you're spending $50 per lead but your average customer is worth $5,000 over time, you're doing well.

In 2024, with privacy changes affecting digital ads, CPL campaigns are becoming more valuable. They let you track results and measure ROI precisely, which is great for marketers who need to show their worth.

5. CPV (Cost Per View)

CPV is shaking up video advertising. You pay when someone watches your ad. That's it. With video content booming in 2024, marketers are jumping on the CPV train.

Why? It's all about engagement. You're not throwing money at impressions or clicks. You're paying for actual eyeballs on your content. It's perfect for video-heavy platforms like YouTube.

Here's what CPV looks like across industries:

Industry	Average CPV
E-commerce	$0.10 - $0.30
Tech	$0.15 - $0.50
Entertainment	$0.05 - $0.20

But don't take these as gospel. Your results may differ.

CPV in the Wild

A tech startup tried CPV on YouTube in March 2023. They set it at $0.25. After a month, they had 100,000 views, costing $25,000. The result? Product sign-ups shot up 45% compared to the previous month.

Why CPV Matters

In today's digital jungle, getting noticed is tough. CPV ensures you're paying for real engagement. As Akshay Kothari, CPO of Notion, says:

"In the attention economy, every view counts. CPV allows us to directly tie our ad spend to viewer engagement, giving us a clear picture of our content's effectiveness."

Crushing the CPV Game

Make killer content. If it's not worth watching, why pay for views?
Target like a sniper. Use platform tools to find your audience.
Think mobile-first. Most people watch on their phones.
Test, learn, repeat. Try different video styles and see what sticks.
Look beyond views. Track click-throughs and conversions too.

In 2024, CPV isn't just a number. It's a strategy. By creating content people actually want to watch, you're not just saving cash. You're building connections that can turn into real business growth.

6. CPI (Cost Per Install)

CPI is the new kid on the block in mobile app marketing. It's straightforward: you pay when someone installs your app. No installs? You don't pay a dime. App developers love it for growing their user base.

Let's look at the 2023 CPI costs around the world:

Region	Average CPI
North America	$5.28
Europe, Middle East, Africa	$1.03
Asia-Pacific	$0.93
Latin America	$0.34

These numbers paint a picture. North America's high CPI? That's tough competition and high-value users. Latin America? It's a bargain hunter's paradise for app growth.

But here's the thing: CPI isn't just about cheap installs. It's about getting users who stick around. As Akshay Kothari, CPO of Notion, puts it:

"In the attention economy, every install counts. CPI allows us to directly tie our ad spend to user acquisition, giving us a clear picture of our app's market penetration."

CPI in action

A mobile gaming startup tried CPI in the US market in March 2023. They set their CPI at $4.50, just under the average. The result? 50,000 installs in month one, with 22% sticking around after 30 days. That's way better than most apps see.

Nailing CPI in 2024

Do the math: Figure out how much a user is worth to you long-term. If they're worth $20, paying $5 to get them might make sense.
Pick your battles: Pricier markets like the US often have users who spend more. Don't just chase the cheapest installs.
Make your app store page pop: A killer icon and screenshots can boost free installs, bringing down your overall CPI.
Watch what users do: Getting installs is step one. What users do next is crucial. Use tools to keep an eye on how they engage.
Keep tweaking: Try different ads and targeting. Small changes can make a big difference in your CPI.

CPI is great, but it's not the whole story. Use it with other metrics like how long users stick around and how much they spend in your app.

In 2024, with all the privacy changes shaking things up, CPI campaigns are a clear way to grow your app. Just focus on quality, not just quantity, and you'll be on the right track.

Benefits and Drawbacks

Let's dive into the pros and cons of six ad revenue models. Understanding these can help you make smart choices in 2024's digital world.

CPM (Cost Per Thousand Views)

CPM works great for getting your brand out there. It's simple to use and gives publishers with lots of traffic a steady income. But it's not perfect.

"CPM is like casting a wide net. You'll catch a lot of fish, but not all of them will be keepers." - Digital Marketing Expert

A food delivery app used CPM in 2023. They paid $7.63 per thousand views. The result? 10 million views in two weeks and 15% more app downloads. This shows CPM can boost visibility, but you need deep pockets to see big results.

The Good:

Great for brand awareness
Steady income for high-traffic sites
Easy to set up and track

The Bad:

No guarantee people will engage
Needs tons of traffic to pay off
Can fall victim to fake views

CPC (Cost Per Click)

With CPC, you only pay when someone clicks. This pushes advertisers to make ads people want to click on. But it comes with its own set of challenges.

A SaaS startup's Google Ads campaign in 2023 shows what CPC can do. They made their ads better and improved their landing pages. The result? They paid 15% less per click and got 22% more conversions in just three months.

The Good:

You only pay for actual clicks
Encourages better ad content
Links costs to potential leads

The Bad:

Can get pricey in competitive fields
Needs constant tweaking to stay profitable
Watch out for click fraud

CPA (Cost Per Action)

CPA ties directly to results. Advertisers love it because they only pay when someone takes a specific action. But it's not all smooth sailing.

Hurom, a juicer brand, crushed it with CPA in March 2023. They switched to influencer marketing and rebranded. The payoff? Their cost per action dropped by 65% and they made 2.5 times more money for every ad dollar spent.

The Good:

Direct link to ROI
Pushes for high-quality traffic
Less risky for advertisers

The Bad:

Can be tricky to set up and track
Might result in fewer actions overall
Publishers and advertisers might have different goals

CPL (Cost Per Lead)

CPL focuses on getting qualified leads, not just traffic. It's great for linking marketing spend to sales opportunities. But it's not without its downsides.

A B2B SaaS company's story from 2023 shows CPL's potential. They focused on content marketing and SEO. Over six months, they cut their cost per lead from $310 to $164 - that's a 47% drop!

The Good:

Targets qualified leads
Links spending to potential sales
Clear metrics for lead generation

The Bad:

Can be expensive in competitive markets
Lead quality can vary
Needs strong follow-up to convert leads

CPV (Cost Per View)

CPV is all about video views. It's perfect for telling your brand's story or showing off products. But it has its limits.

A tech startup's YouTube campaign in March 2023 shows what CPV can do. They paid $0.25 per view and got 100,000 views for $25,000. The result? 45% more product sign-ups compared to the previous month.

The Good:

Pay only for actual video views
Pushes for engaging video content
Great for brand stories and demos

The Bad:

Doesn't guarantee engagement beyond the view
Can be costly for longer videos
Success depends on video quality and relevance

CPI (Cost Per Install)

CPI is all about app installs. It's great for app marketing campaigns and encourages a better app store presence. But it's not without its challenges.

A mobile gaming startup's U.S. campaign in March 2023 shows CPI's potential. They paid $4.50 per install and got 50,000 installs in the first month. Even better, 22% of users were still using the app after 30 days - beating industry averages.

The Good:

Direct link between spend and installs
Precise budgeting for app marketing
Pushes for better app store presence

The Bad:

Doesn't account for long-term engagement
Might focus on quantity over quality
Costs can vary widely by region and app type

When picking an ad model, think about your goals, who you're trying to reach, and what's normal in your industry. As Akshay Kothari from Notion says:

"In today's world, every interaction matters. The right ad model lets us link our spending directly to meaningful user actions, giving us a clear picture of how well our campaign is doing."

Which Model Should You Choose?

Picking the right ad revenue model can make or break your digital strategy. Here's how to choose:

Look at your content and audience first. Running a popular blog? CPC might be your best bet. A B2B SaaS company tried this in 2023 and cut their cost per lead by 47% in just six months.

Next, think about your goals. Want brand awareness? Go for CPM. Chasing sales? CPA's your friend. Each model has its strengths:

CPM for brand awareness
CPC for traffic and leads
CPA for sales
CPL for lead generation
CPV for video engagement
CPI for app marketing

Your industry matters too. In gaming, CPM rates usually hit $4-$12. But CPI costs? They're all over the map:

Region	Average CPI
North America	$5.28
Europe, Middle East, Africa	$1.03
Asia-Pacific	$0.93
Latin America	$0.34

Don't forget about your traffic. Lots of visitors? CPM might work well. Smaller, engaged audience? Try CPC or CPA.

Experiment a bit. A tech startup gave CPV a shot on YouTube, spending $25,000 for 100,000 views. Result? 45% more sign-ups than the month before.

Mix it up. Use different models. As Jacquelyn White, Content Marketing Manager, says:

"Offer value, stay true to your brand, and understand your audience."

Think long-term too. Subscription models can be steady earners. Creators using them make 20 times more than those who don't, even with just 1.5% of followers subscribing.

Keep an eye on trends. With privacy changes shaking up digital ads in 2024, CPL campaigns are becoming hot for tracking ROI.

FAQs

How to monetize your video content?

In 2024, video content monetization is a big deal. Here's how to cash in:

1. Advertising

Let's start with the classic: ads. YouTube's got pre-roll, mid-roll, and post-roll options. And get this: U.S. digital video ad spending hit $55.34 billion in 2023. By 2025? We're talking $78.5 billion.

2. Subscriptions

People will pay for premium, ad-free stuff. Just ask Newsday. They mixed AP video into their subscription offerings and boom - more digital subscribers.

3. Affiliate Marketing

Got a review channel or how-to content? Promote products and earn commissions. It's that simple.

4. Sponsored Content

Team up with brands for custom videos. News organizations are all over this, creating content that fits marketing goals.

5. Live Streaming

Ever heard of Super Chats on YouTube or Bits on Twitch? That's real-time cash during live streams.

6. Digital Products

Sell video courses, webinars, or exclusive behind-the-scenes content. People love that stuff.

Here's the deal: don't put all your eggs in one basket. Mix it up.

Dawn M. Deguzman, Director of Global Visual and Audio Products at The Associated Press, puts it this way:

"Video content has become an indispensable part of the monetization strategy for news media companies."

Want to make the most of your video content? Do this:

Grow your audience. More eyeballs = more money.
Use SEO. Make your videos easy to find.
Check your stats. See what works, do more of that.

It's not rocket science, but it does take work. Get to it!

6 Ad Revenue Models Compared: 2024 Guide

1. CPM (Cost Per Thousand Views)

2. CPC (Cost Per Click)

3. CPA (Cost Per Action)

4. CPL (Cost Per Lead)

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5. CPV (Cost Per View)

6. CPI (Cost Per Install)