There are many ways to pay for advertising on the internet, each with its own advantages and disadvantages. In this article, we will take a detailed look at the Cost-Per-Time (CPT) model, which is quite rare and not available on all advertising platforms. However, in certain cases, it can be the most beneficial choice for an affiliate.
Before delving into the differences between payment models, let’s recall why it is so important to choose a payment model that suits the goals of your advertising campaign.
Advertising is essential for increasing product or brand awareness. With numerous targeting settings and different methods for increasing CTR, online promotion opens up a wide range of opportunities. Additionally, online promotion allows for tracking impressions and assessing the audience that viewed or interacted with the advertisement. Such data can be useful for compiling statistics and analyzing the success of an ad campaign.
So, what payment models for advertising exist? Let’s find out.
Payment Models
A payment model refers to the terms under which an advertiser places an advertisement. Here are the most popular models:
- CPM (Cost Per Mille): Payment for every thousand impressions. In other words, the advertiser pays for the number of times the ad is shown.
- CPC (Cost Per Click): Payment for clicks. The affiliate pays only for clicks on the link.
- CPA (Cost Per Action): Payment for actions. The affiliate pays for specific actions, such as purchasing a product, subscribing, or providing contact information for follow-up.
However, there are payment models on the market that are less common:
- CPL (Cost Per Lead): Payment for targeted actions rather than impressions or clicks. This model allows for an evaluation of the effectiveness of the ad campaign.
- CPO (Cost Per Order): Payment for the completion of a purchase. In this case, the webmaster pays only for the purchase made by the user.
- CPV (Cost Per View): Payment for viewing the advertisement. The affiliate pays only for the display of the advertisement.
What is the CPT Payment Model?
CPT (Cost Per Time) is a model where the advertiser pays for a specific period during which the ad is displayed. The units of measurement are days, weeks, or months. This model is also applicable where affiliates earn for the period during which the lead continues to use the product. Compared to CPC or CPL, this model places more emphasis on audience retention.
When working with the CPT model, the webmaster pays a fixed amount for a given period, regardless of the number of impressions and clicks. This method is suitable for those who aim to increase the number of views on their advertisement.
The CPT model existed already in the early stages of internet promotion. At that time, companies were highly interested in maximizing the reach of their audience with their advertisements. CPT allowed them to pay for the placement of creatives over a specific period, regardless of the number of impressions and clicks.
This approach was popular among advertisers with a limited budget. It allowed them to reach a large number of users without having to pay for views or clicks.
Nowadays, the CPT model is used less frequently compared to other methods, such as CPM and CPC. Nevertheless, it remains an effective tool for affiliates who want to ensure their advertisement has a prolonged presence on a particular platform.
Why the CPT Model is Relevant in 2024
One of the main advantages of the CPT model is its economic benefit. Webmasters need to pay significantly less because they pay for the entire period of ad placement. However, the cost per click to the website might be higher compared to CPC and CPM models.
The CPT model works well for niches such as subscriptions, courses, utilities, and streaming services. As we know, the popularity of subscription models has been growing in recent years — another reason to pay attention to the CPT model.
According to a 2023 Brother survey (4200 respondents from the USA, Germany, France, and Italy), 79% of respondents are subscribed to at least one multimedia service, and 68% have multiple subscriptions. And this is only a part of the Tier-1 market, focusing only on entertainment subscriptions.
How to Benefit from the CPT Model
- Look for products that emphasize long-term use, subscription, and recurring payments.
- Build a promotion strategy focusing on the long-term rather than quick conversions. In promotions, highlight the product’s benefits that increase LTV, content exclusivity, and product support.
- Look for products with trials and emphasize this in promotions. Also, add small bonuses to the campaign: subscribe and get a guide, checklist, etc. If the advertiser hasn’t provided perks, you can compile such a bonus yourself from open sources or generate it with neural networks.
- Maximize the use of product reviews and UGC content on landing pages.
Conclusion
The CPT model is a payment option for attracting traffic, which can be useful for webmasters with a limited budget or those working with subscription products. Depending on the campaign goals, even such an “antiquated” payment model can be advantageous. And in advertising, as we know, all means are good.
