One of our most often asked questions is how does Propeller Ads pay their publishers?
This post is going to expose you to the answer. Propellerads makes use of a highly advanced optimization algorithm that is based on ad focused on providing website owners and webmasters with the highest prices in the industry for their ad inventory. In a nutshell, irrespective of the payment model used by our advertisers (Cost Per Mille, Cost Per Action/CPL or Cost Per Click), your advert inventory units will always generate the greatest revenue possible for you.
As a publisher blogging fulltime or blogging for passive income you will get at most 80 percent profit of all adverts displayed on your blog or mobile app. We do business with a number of well known advertisers from around the world who all use different payment models.
Propeller Ads combines all payment models together and places them under the “eCPM” umbrella, which is highly optimized to providing the best possible payouts based on a number of some variables.
Cost Per Action, Cost Per Click and Cost Per Mille – What do they all mean?
We will start by understanding how does propellerads pay their publishers, at propeller ads we have different payment models that is used for our adverts. We provide advertisers with a number of different payment model for their ads, these models include:
CPC (Cost per click) – Is known as a pricing model where the advertiser pays for each click their advert receives. The advertiser sets the maximum bid they are willing to pay per click, each time an ad is clicked they are charged. For example, if they have set their CPC to $0.1, they will be charged $0.1 each time anyone clicks on their advertisement worldwide.
CPA (Cost per action) – Works off what the advertiser is willing to pay per action. An action can be anything from a sale, newsletter opt-in, impression, click or contact request. For example, if an advertiser wishes to pay $2 each time someone opts-in to their newsletter via their advert, the cost per action is $2
CPM (Cost per thousand impressions, “mille”) – Is a common pricing model used by our clients. An advertiser pays a fixed amount per every 1000 impressions severed of their ad. An impression is anytime the ad is viewed or seen by a surfer.
effective Cost Per Mille (eCPM) – Also referred to as ‘effective cost per thousand’, eCPM is the amount you will earn as a publisher per 1000 impressions of our ad units. eCPM combines all payment models together, regardless of the actual pricing model used by the advertiser (CPA, CPM, etc), providing you with an optimized average per 1000 impressions.
How eCPM for publishers is being calculated
The mathematics behind eCPM is very easy to calculate.
Let’s take the following example, a website receives 100,000 impression per month and has three Propeller Ads’s ad units strategically placed on their website. During the last 30 days the website generated $1,000 in revenue using Propeller Ads.
The maths is just below: simple to calculate;
In the calculation above, for every 1,000 impressions the website received, it earned $10 in revenue (eCPM rate = 10 USD). This is worked out by dividing the total revenue amount against the total number of website impressions.
eCPM(effective Cost Per Mille) shows how much revenue your website is generating per 1,000 impressions you get combing all advertisers’ campaigns together.
How our eCPM optimization algorithm works
The example above is exactly that – an example. The amount your website earns per 1,000 impressions will vary depending on a number of factors. Propeller Ads’s optimization algorithm takes a few days (longer days for sites with not much traffic) to optimize your ad units to provide you with the highest possible eCPM rates.
It will test various campaigns and analyze which ads are best suited for your audience. This is to provide each publisher with the greatest results while still maintaining an awesome experience for viewers.
The more traffic your website brings the quicker the optimization process is completed. It may take a week before you see the maximum effect of our fully optimized eCPM rates.
Best tactics to optimizing eCPM
As a blogger,you may want to know how does propellerads pay you, and also have a part to play in increasing your overall effective Cost Per Mille. These are 5 simple but highly effective ways to boost your overall revenue drastically.
1. Ads Placement Optimization
If you are using banners ads, don’t forget to optimize their placement according our recommendations. For example, banner ads which appear above the fold tend to provide a higher effective Cost Per Mille as they get viewed and clicked more often by visitors. Aim to have at least one ad unit above the fold, but be sure not to over place it as your website many get punished by search engines if you have too many.
2. Utilize Heatmaps
Heatmaps are a great way to see where your traffic is placing their mouse courses when browsing your site. Once you know where your audience is looking, place ads in hot concentration areas to increase your click-through rates for a better revenue.
Here are the most popular heatmap services we provide:
3. Utilize Many Ad Units To Increase Ad Coverage
An easier and simpler way to maximize your effective Cost Per Mille rate is to place ad units of more than one type (onclick pop-unders, mobile dialog ads, banners or others) and in different sizes on your pages.
This way, your visitors are served more adverts and offers that are highly engaging and draw their attention, especially if you have a large share of mobile visitors.
Test various ads to see which yield the greatest Revenue income based on your audience and website theme.
4. Drive More Traffic To your Website
Take advantage of every medium you can think of from forums to social media to drive traffic to your site. The more traffic you bring the bigger your profits will be accrued.
5. Make Adverts Stand Out
Consider your advert units like call-to-actions, they need to stick out and be clear to your websites’ visitors. The easier they are to spot the more they will be viewed and clicked on, this will greatly increase your effective Cost Per Mille.
Propeller Adverts’s eCPM makes use of all the hard work out of managing your ads, propeller have optimized everything to make sure your life is easier and that you earn big as a blogger. You simply place our ad units on your website/ blog, drive enough traffic and watch the cash roll in day by day.