I am relatively new to this and I am confused in this particular area. I understand that CPM means "cost per thousand impression". I assume if a site features such type of ads, the income will be stable regardless of the click-through rates. But when I read through the notes on CPM rates, they vary from week to week even on the same agency. Why is this the case? I could understand some fluctuation month to month if the advertisers decide to pay less for the same type of ads but why does CPM rate vary day to day? Does it still some how relate to click-through rates? If that's the case, why call them CPM and not CPA?
CPC = Cost/click & CPM = Cost/1k view Both have its advantage and disadvantage. The real answer depend on the product/ service you provide through your website. For a more text based site i would suggest image ads which can be both click/impression based and for more image intensive page go for text ads on click through option only. If the topic has targetted content;it is best to go for CPC ads. and if the site deal with various topic like forums; then better is to go for CPM ads. Note that CPM ads are paid according to geographical location. Not to confuse; take a combo of CPM ads and CPC ads and see which perform better. All the best
So are you saying than CPM rate, once subscribed, won't fluctuate? If no one clicks on your ads, you still get to keep the money and future CPM rate won't be affected? Thanks.
depends on the people on your site. heavy webusers tend to NEVER click any ads. newbie users often mistake cpc banners as content and give good clicks. best is to try out both in a 50:50 rotation and see what it brings.
Hey yhbae01, The CPM will always fluctate if it's calculated using a CPC platform.. for example you run CPC ads over 1 week and get 1000 impressions. One day you get 2 clicks, another 8 clicks and the rest no clicks. At the end if you we're paying $1 per click then you're CPM would still be calculated as 1% (10$/1000impressions). Obviously if this was the case for the advertising platform in question, the CPM would fluctuate. In other cases publishers will sell ad space through a CPM model. Basically they are selling real estate on a visited site and the CPM can at times vary based on traffic and SERPs(search engine ranking positions). The most stable form of ad buying would be CPm (cost per month) where a publisher basically rents ad space for a monthly period. These type of media buys typically fluctuate the least from month to month but will vary again based on traffic ect. (try searching "buysellads" in Google/Bing for an example)
I think I am confusing everyone here with my question... Re-phrased: If no one clicks on your CPM-based ads, will your CPM rate still be at a stable rate?
Oops your post went before I had a chance to click on the last one. Ok, so since most of the programs today claims they are CPM, can I make the assumption that they will continue to pay at their pre-determined rate regardless? Lets take an example on the well-known ones such as Tribal, Casale or Value Click.