What is CPM? Know about it

 What is CPM?
Cost per impression, often abbreviated to CPI, 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.
An online advertisement impression is a single appearance of an advertisement on a web page. Each time an advertisement loads onto a users 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 event 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 long 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

CPI and/or Flat rate advertising deals are sometimes preferred by the publisher/webmaster because they will receive a more consistent fee proportional to the amount of traffic.

Today, it is very common for large publishers to charge for most of their advertising inventory on a CPM or CPT basis. A related term, effective cost per mille (CPM), is used to measure the effectiveness of advertising inventory sold (by the publisher) via a CPC, CPA, or CPT basis.

This type of advertising arrangement closely resembles television and print advertising methods for speculating the cost of an advertisement. Often, industry agreed approximates are used. With television, the Nielsen Ratings are used; print is based on the circulation a publication has.

A page view (PV) or page impression is a request to load a single page of an Internet site. On the World Wide Web a page request would result from a web surfer clicking on a link on another HTML page pointing to the page in question. This should be contrasted with a hit, which refers to a request for a file from a web server. There may therefore be many hits per page view.
These page views may be counted as part of web analytics. For the owner of the site this information can be useful to see if any change in the page (such as the information or the way it is presented) results in more visits. If there are any advertisements on the page, the advertisers would also be interested in the number of page views to determine their expected revenue from the ads. For this reason it is a term that is used widely for Internet based marketing and advertising.

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.

When you sign up for a CPM program and put ad code on your website ads are started displaying and you earn on the basis of CPM cost per thousand impressions. You will be paid when that ad is displayed 1000 times. You don’t have to worry about how many clicks that ad is getting or how many leads are generating.
CPM rates can be fixed or can be different depending upon advertiser, your country, your website topic etc. CPM ads can make you good money if you are getting good traffic on your website.
  
 

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