Digital advertisements involves two participant which are: The advertisers and The Publishers.
See a quick illustration:
NaijaTech is a website where users can place advertisement of their various products. So, NaijaTech is the Publisher. The business that will pay for the advertisement is the Advertiser. Popular example are nairaland.com, facebook.com, lindaikejisblog.com and so on.
There are three popular ways to do digital advertisement. They are namely:
-> CPC (Cost Per Click)
-> CPM (Cost Per Mille or Cost per 1000 impressions)
-> CPA (Cost Per Action)
CPC (Cost Per Click)
Cost Per Click is a type of digital advertisement where by a publisher charges an advertiser per every click of the adverts. The advertiser sets a particular amount to be charged per click eg N10 Naira per every click. For this type of advertisement placement, no matter the views or impressions made to viewers, advertisers only pay when an action is taken by clicking on the ads.
CPM (Cost Per Mille or Cost Per 1000 impressions)
Cost Per 1000 impressions is a type of digital adverts whereby advertisers pays whenever 1000 impressions or views is acheived on their adverts.
CPA (Cost Per Action)
Cost Per Action is a kind of advert placement whereby publishers only get paid whenever a customer takes an action by buying a product or subscribing for a service. This type does not deal with just clicking or impressions, customers have to make a purchase before publishers of the adverts can be paid. This works like the affiliate programme of a business.
Either ways it is a win win package