There are a large number of payment methods for advertising on the web, each of which has its pros and cons. In this review, we will analyze the CPT model, which is not often found on advertising platforms, but in some situations can be the most profitable for arbitrageurs.
Before we move on to an overview of different payment models, it is important to understand why choosing the right model is important to achieve your RC goals.
Advertising is needed to increase the awareness of your brand or product. Thanks to targeting settings, online promotion offers great opportunities. Moreover, online promotion makes it easy to monitor impressions and analyze the audience that interacts with ads. This data helps to create statistics and analyze the effectiveness of an advertising campaign.
Let’s take a closer look at the existing payment models.
Payment models
A payment model is the terms on which an advertiser places an ad. Let’s consider the most popular models:
- CPM – pay per thousand impressions. In other words, the advertiser pays for impressions.
- CPC – payment for clicks. The arbitrator pays only for clicks on the link.
- CPA – action fee. The arbitrager pays for specific actions: purchase of goods, subscription, leaving contacts for feedback, etc.
There are also less common remuneration models:
- CPL – payment for targeted actions, not impressions or conversions. This model allows you to evaluate the effectiveness of the PPC.
- CPO – payment for making a purchase. In this case, the webmaster pays exclusively for the purchase of goods by the user.
- CPV – payment for viewing an ad. The arbitrager pays only for the display of the ad.
CPT payment model – what is it?
CPT (Cost Per Time) is a payment model where the advertiser pays for a certain period of advertising. It can be days, weeks, or even months. CPT is used when an affiliate earns money for the period when the lead continues to use the product. Unlike CPC and CPL, the emphasis here is on keeping the attention of the target audience.
When using CPT, a webmaster pays a set amount for a specific period, and this method does not involve counting clicks or conversions. This strategy is ideal for advertisers who are interested in increasing the number of views of their ads.
In the early days of online marketing, the CPT model was already known. During this period, brands sought to achieve the greatest reach of potential customers with their advertising campaigns. CPT provided an opportunity to pay for the placement of advertising materials for a specific time interval without taking into account the number of impressions or clicks.
This method was especially popular among advertisers with limited budgets, as it allowed them to reach a wide audience without additional costs for each view or click.
Nowadays, the use of the CPT model has decreased compared to other models, such as CPM or CPC. However, for arbitrageurs, it is still a valuable tool that ensures the long-term stay of ads on the chosen platform.
Why the CPT model is relevant in 2024
The main advantage of this system is its financial benefit for webmasters who do not need to spend large sums of money, as payment is made for a specific time interval during which the advertisement is placed. Even though the cost of user acquisition may be higher than when using CPC or CPM, the long-term perspective and savings are obvious.
The CPT model works best in areas such as subscriptions, courses, apps, and streaming. The growing popularity of subscriptions makes it especially relevant.
According to a 2023 study by Brother conducted among 4,200 people in the United States, Germany, France, and Italy, 79% of respondents subscribe to at least one multimedia service, and 68% have multiple subscriptions. This data only applies to the leading markets and covers entertainment services only.
How to benefit from the CPT model
- Focus on product discovery with a focus on length of use, subscriptions, and recurring payments.
- Develop a promotion plan focused on the long-term perspective instead of quick conversions. In promotions, emphasize the benefits of the product that can increase LTV and the uniqueness of the content.
- Search for products with trial periods and emphasize this in the promo. Additionally, include small bonuses in your advertising campaigns: a guide for subscribing, checklists, etc. If bonuses are not mentioned in the advertisement, such incentives can be created independently from available data or by generating them in neural networks.
- Actively use customer reviews and UGC content on landing pages.
Conclusion
The CPT model is one of the payment options for traffic acquisition, which will be especially useful for webmasters with a small budget. Depending on the company’s goals, this seemingly outdated system can turn out to be very profitable. After all, in the marketing world, it is customary to use any available tools.
