As per wiki, CPM is defined as “Cost per impression, often abbreviated to CPI or CPM for Cost per thousand impressions, is a phrase often used in online advertising and marketing related to web traffic. It is used for measuring the worth and cost of a specific e-marketing campaign. This technique is applied with web banners, text links, e-mail spam, and opt-in e-mail advertising, although opt-in e-mail advertising is more commonly charged on a cost per action (CPA) basis although sometimes CPM is used.
An online advertisement impression is a single appearance of an advertisement on a web page. Each time an advertisement loads onto a user’s screen, the ad server may count that loading as one impression. However, the ad server may be programmed to exclude from the count certain non qualifying activity such as a reload, internal user actions, and other events that the advertiser and ad serving company agreed to not count. For online advertising, the numbers of views can be a lot more precise. When a user requests a web page, the originating server creates a log entry. Also, a third party tracker can be placed in the web page to verify how many accesses that page had. There are other advertising pricing structures, which are generally referred to as Cost Per Action (CPA) :
- CPC – Cost per click Through
- CPL – Cost per lead (lead usually meaning a free registration)
- CPS – Cost per sale
- dCPM – Dynamic CPM”
CPM-based advertising may be more suited for your company if your desired keywords are very popular and expensive. Instead of paying $5 for a single click, you could but 1,000 ad impressions. This can add up over time. It might prove good to monetize your website or blog with CPM to make money online.
Although click-through ratios for CPM-based advertising are low, click-throughs aren’t everything. Even an unclicked (but viewed) ad can play an important role in promoting your company. A well-designed ad will catch a viewer’s eye and may promote brand recognition, even if the viewer doesn’t click.
Where to capitalize on this opportunity:
A website or blog generating 10000 page views daily displaying an advertising banner with a $5 CPM, therefore, will earn $50 daily. The CPM rate depends primarily on three factors
- Choice of network
- Position of advt.
- Size of advt.
There are many PPC network explained in previous post offers CPM advt also. One of them is Google Adsense also, however it entirely depend on advertiser and publisher does not have any control. Below are the list of popular CPM advertising networks:
- Casale Media
- Advertising.com
- Right Media
- Burst Media
- Value Click
- Clickbooth
- Tribal Fusion
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