Whether you want to make money blogging or promote yourself, you’ll advertise at least once in your life.

When talking about advertising networks or advertising, we read some terms that confuse us and, in some cases, people become afraid and don’t take the step to advertise.

To avoid this happens, and as it’s very simple, I’ll explain what these frequent terms are and what they mean, even the differences between them and which are the most profitable.

This is mostly for beginners, but it may help more experienced bloggers that are starting to advertise as well.

Advertising Glossary.

What is the ROI?

The ROI simply means Returns on Investment. I’ll show you an example and you’ll understand it easily.

Let’s say you have an affiliate product, a book, which title is “How to make money blogging”. You don’t have a blog, so you try to advertise and promote the (e)book. You love Google, so you try Google Adwords and invest 100$ on advertisement. You set up your ad and publish it. You got lucky, and the book that cost 20$ each, has been sold to 10 readers that clicked your ad.

You’ve made 200$. That’s ok, but you need to take away the 100$ you used to advertise, so you can calculate your real profit. Which means 200-100= 100$. Those 100 bucks are your ROI. It can be also calculated using percentage.

What’s CPC?

CPC is an informative term for both advertisers and publishers. CPC just refers to the Cost per Click from a particular ad.

For advertisers it helps to calculate the estimate amount to spend to get a particular clicks amount.

Ex: I want to advertise my blog, so I use Adwords (yes I also love Google). When setting up my blog, I chose “Make money blogging” as the main keyword. Adwords says me that the CPC for that keyword is 0.70$ (I wish), so in order to get 100 clicks I would need to spend 70$.

What does CPA means?

CPA is one of my favorite (if not THE favorite) way to advertise, as I mostly make money from Affiliate Programs. CPA means Cost Per Action. As usual, an example worth more than 1000 images.

I’m promoting an affiliate product. I bought a new Olympus Digital Camera and it’s so good, that I will mostly sale a couple. So I decide to advertise using CPA, which guarantees me the reader’s action, which in this case is to purchase the product.

Of course CPA has higher CPC rates than any other advertising way, but I personally think it worth it.

And to finish,

What’s the CPM?

The CPM means Cost per Impression. But hey? Wouldn’t it be, according to other terms, CPI? No, because the CPM rates are calculate on a thousand bases. I’ll show you how it works by writing an example:

Ex: I’ve a banner and I want to advertise it within your website. You tell me that in order to put this banner on your blog’s header, the CPM rate is 5$; meaning that once my banner is displayed one thousand times, I’ll pay you 5$.

Yes, that simple.

I keep meeting bloggers that haven’t advertised yet because there are afraid of these terms, so they decide not to do it because it’s more comfortable to just stay where they are and not to go one step ahead.

Advertising, like everything on the net, isn’t that hard. Don’t be afraid by what others say, just do what you want without breaking the rules and you’re on your way towards your success.

Thanks for reading.

Tagged as: Internet Marketing

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