First of all we should define what online advertising is. Online advertising is CPM advertising, which means cost per 1000 impressions. Those who have the most money to spent on advertising, are the ones who have the most resources, and therefore the ones who deserve most of our attention.
The main problem of the existing advertising networks with the CPM model, is that you can only target a single site. This makes CPM advertising almost impossible to handle.
As a result, we use CPC (cost per click), which has the advantage of targeting automatically thousands of sites.
The solution to this problem is to use a system where the advertiser will be able to target a lot of sites using the CPM model.
This system can be done very easily by using a directory structure. Each publisher will submit his site in the appropriate category/subcategory and the advertiser will be able to advertise on all sites under the category and its subcategories.
The network will show the CPM ad through several sites and charge you for it. Just like the CPC system does, except that it charges for clicks, not impressions. I won’t go further into how this system should work, I’m sure those who will decide to build such a network, will know what to do.
The point is that this way the network can serve relevant ads, even more relevant than the best contextual networks.
For example, suppose there is network with a category named “Make Money Blogs” and inside this category there are over 600 blogs. Advertising on all these blogs with a single CPM campaign, would be a great thing.
You might ask, why not use the same directory-based system using the CPC model ?
The answer is simple. The CPM model forces advertisers to create better quality ads. If they don’t, they will pay for every unproductive ad impression.
With the CPC model, advertisers can create and run campaigns with low CTR. Although the network will eventually lower these campaigns exposure, the damage has already been done. Advertisers have nothing to lose.
Another advantage of the CPM model, is that it’s extremely difficult for someone to cheat. The cheater must access the page many times, because of the low cost per impression. On the other hand a click can occur after only a few ad impressions.
Finally the CPM model raises the quality of the advertised sites, since they will have to worth the money spent for every impression. A very common problem of the CPC model, is the fact that black-hat sites (such as email-harvesters, installers, etc) can pay a high price per click, a price that a regular site cannot pay.
Therefore low quality sites appear on the top spots of the ad units, which are not attractive to most visitors, except to very few. Black-hat sites eventually get their advertising, publishers lose big money because of the low number of clicks to low quality ads, and nobody can do anything about it. Even if an advertising network decides to not allow black-hat sites, it is very difficult to do so, because they can take various forms and appear like regular sites/services.
The only solution to this problem, with minimal network administration burden, is the CPM model. Black-hat sites will not vanish, but they will take the position in the ad units they deserve. And this can make a huge difference in publishers/advertisers/networks earnings.
ePayment:
One of the most important features on an advertising network, is to accept from advertisers and pay to publishers, with an e-payment service. Something that many, mainstream advertising network owners don’t know, is the importance of using ePassporte. ePassporte is the only service, at least from what i know, that allows all people worldwide to open an account and get a virtual VISA credit card.
There are a lot of networks out there, that use different e-payment services from what the users may have, not to mention the ones that don’t use one at all (Adwords, Adbrite..). This means that many times, you need to either use a credit card or the virtual VISA account from ePassporte.
There are also a lot of young people using their parents credit cards. It’s one thing to use a credit card for verification and another thing to charge money on it for advertising. It’s not nice to make money on advertising and get paid with paypal or check, while you need a credit card to advertise on AdWords or Adbrite.
Plus it is safer to use online the virtual VISA account number, than the regular cc number. Less problems if something ever happens.
ePassporte also allows transactions with adult sites, expanding even more the reach on webmasters.
Now that i made clear why ePassporte must be the standard option for e-payment on advertising networks, lets see about the backup option. We always need to have a backup option, don’t we ?
I think the best one is Paypal. A lot of people use it, like it, it’s a problem for adult webmasters but nevertheless good as a backup.
Now what ?
Now we wait until someone build this thing.
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