Lets say there of two websites of the same niche. One gets a lot more traffic than the other. Will the website with more traffic get a higher CPM because advertisers like more people to view their ads? Or would it be lower because more people see the ad and it is paid per thousand views?
I certainly don't think the CPM would be lower on a high-traffic site - it may be higher, it may be the same. The only time you would see it go higher is if click-throughs were higher, or if the advertisers ran the ads more for the purpose of brand building than extracting a certain number of orders or the like.
CPM stands for "cost-per-thousand" impressions. If the CPM is $15, you can get 10,000 impressions for $150. CPM is NOT cost-per-click. Their is a chance you won't get ANY visitors with CPM, but that is unlikely, of course. Let's say a website has 100,000 pageviews per month. 100,000 / 30 days in a month = ~3,333 per day If you pay $15 per 1,000 pageviews, it would only show up for less that a day. Now, let's say 0.001% Click-Thru: Based on the math, you would get ~1 visitor. The website that is offering CPM advertising likes the advertisers who purchase lots of pageviews. Make sense?
Wish advertisers actually paid 15$/1000 pageviews lol. Then i'd be a Millionare in just one year I get 100,000 Pageviews a day approximately...so that means with a 15$CPM...i'd get 15 x 100,000 ------------ = 1500$/DAY! 1000 So that means..in one month...1500x30 = 45,000$/mo (THAT IS IF I JUST PLACE ONE OF THOSE 15$ CPM Ads on each page) If i put 3 of those..i'll make 45,000 x 3 = 1,35,000$/month LOL...10 months..and I'm a Millionare!! If someone can show me an ad agency that pays 15$ CPM..i'll pay them 1/4th of the million bucks i earn from it lol