How CPM Ads work?

Discussion in 'AdSense' started by godmode, Apr 27, 2007.

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  1. #1
    Ok. I know overall how CPM ads work and they pay per 1000 impressions, but i always wonder how do we actually get paid?

    Consider this example. a site has a eCPM of $10.00, so the advertisers targetting an ad should be paying at around $10 per 1000 impressions. Now 1000 impression inventory might not be used up in a day and it might be scattered over a period of time. I guess in that case, we get paid per impression but of course based on the CPM rate.

    So for every SINGLE impression we will get: $10/1000=0.01

    Let me know if you guys got a new formula :D
     
    godmode, Apr 27, 2007 IP
  2. hmpargi

    hmpargi Active Member

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    #2
    hmmmmmm :|
     
    hmpargi, Apr 27, 2007 IP
  3. godmode

    godmode Well-Known Member

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    #3
    it seems no one knows how CPM ads pay :D
     
    godmode, Apr 27, 2007 IP
  4. Pierce

    Pierce Active Member

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    #4
    cpm and ecpm are different...

    ecpm is the effective cpm..
    cpm you already know..

    if you have 2 ads on the same page, 2 cpm ads with a $10CPM on each would mean your ecpm is $20..

    So effectivly, an advertiser may not pay $10 per cpm, but $2cpm, and the other $8 is made up with competing clicks and other CPM ads.

    I think that answers your question?
     
    Pierce, Apr 27, 2007 IP
  5. godmode

    godmode Well-Known Member

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    #5
    ok..great point. i didn know that.however imagine i get only 200 impressions from those 1000 impressions. How much will they pay me? $2/1000 x 200?
     
    godmode, Apr 27, 2007 IP