What you’re describing is Cost Per Click. While still in use with some advertisers, most have shifted towards Cost Per Impression. CPI has a much lower cost per impression, (typically paid per thousand impressions) but it usually balances out because you’re not wholly reliant on clicks to generate revenue. If only 1/1000 people actually click the ad to begin with, then the cost will be the same.
The benefit to CPI is that you’re able to spread your advertising much farther, since you’re able to essentially purchase a thousand ad slots at a time.
fubo@lemmy.world 1 year ago
This is not really true anymore, though it once was. Most web ads are served on a “cost per impression” basis, not “cost per click”. Even classic AdSense is moving to CPM rather than CPC, and Google AdX (which serves big brand ads) already was, as with the old DoubleClick.
Tuggles@lemmy.world 11 months ago
TIL, interesting, thank you for explaining!