CPM Defined
CPM stands for Cost per Thousand ad views using the Latin word mille in the acronym. CPM is one of the most commonly used bench marks in the advertising industry and is not only used online, but in radio, TV and other forms of advertising. Instead of an ad network giving you the total cost for an advertising campaign, it easily states its ad rates at the cost per 1,000 views.
CPM Ad Networks
While CPA (cost per action) and CPC (cost per click) ad networks offer advertising campaigns based upon specific actions such as clicking on an ad to view a web site, filling out a form or purchasing a product, CPM are specifically targeted at advertisers that want others to view their advertisement. In CPM ad networks, advertisers pay for the amount of traffic that simply views a web page with an advertisement or a pop up or pop under ad.
CPM ad networks usually act as brokers bringing together advertisers that would like their advertisements viewed and publishers that have web sites that advertisements can be placed on. The CPM ad network usually has several channels or categories that an advertiser can have their advertisement viewed on. Using CPM ad networks, an advertiser can effectively target their products to those that are interested in the same category that the site attracts. CPM ad networks offer an affordable way for advertisers to target their market. For advertisers to get started, they usually will need an advertisement and to set up a campaign. For the most part, banner ads, pop up & pop under ads, as well as skyscraper or side bar ads must be created. Most CPM ad networks can either refer you to creative services that create ads or can provide you with in house creation of ads.
For publishers that have highly trafficked web sites, CPM ad networks are a great way to monetize their site. For instance, a web site that draws thousands of viewers each day can easily make hundreds of dollars showcasing CPM ads. Publishers can easily sign up with a CPM ad network configure their site to easily display standardized ads and start making money immediately once an advertiser places their ad.
Usually most publishers receive payments bi monthly or monthly and views are tracked by both the web site publisher and the CPM ad network. CPM ad networks are the ideal way to monetize your site, especially if you as a publisher have a high trafficked web site. There is no need to sell a product, generate a lead or have a visitor click on an ad sending the viewer away from your web site. While CPM does not pay as well as other types of monetization strategies, it fits many publishers. needs quite well.
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I must say this is very informative and would be a great resource for advertisers. When it comes to advertising, it is wise not to put all eggs in one basket.
Diversification is one of the key to results plus and selected, targeted approach is advisable. Advertising results is measurable.
I would like to share a few quotes about advertising which would provoke some good and constructive thoughts.
Many a small thing has been made large by the right kind of advertising. ~ Mark Twain
It takes more than capital to swing business. You've got to have the A. I. D. degree to get by - Advertising, Initiative, and Dynamics. ~ Isaac Asimov
Advertising is a business of words that capture the buyers' imagination to take action. ~ Sean Justin Preston
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