Why do companies talk about paying for CPM ???

Discussion in 'Pay Per Click Advertising' started by ruffnat, Nov 3, 2007.

  1. #1
    Why do companies even bother to say they are paying based on CPM when it seems to me they all adjust the rate down based on click rate?

    Why can't they just be honest and up front about it and admit they are paying a click rate, not an impression rate?

    Throwing words out like "Smart Pricing" only makes it worse the way I see it

    anyone care to explain why they do it this way, am I missing something?
     
    ruffnat, Nov 3, 2007 IP
  2. A.G

    A.G Well-Known Member

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    #2
    I think to save advertisers sake , so every advertiser pay only for CPM that convert into a Click or Sale or Lead or ... , so this save a lot of money for advertisers and sameway publishers earn very less money
     
    A.G, Nov 3, 2007 IP
  3. lordadel

    lordadel Active Member

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    #3
    that is totally right
    CPM industry will be the future in my opinion :)
     
    lordadel, Nov 3, 2007 IP
  4. nick-a

    nick-a Active Member

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    #4
    You're looking at it from the wrong point of view - CPM means cost per mile. It's just that the rates are starting to become dynamic. At the end of the day, if you're displaying a CPM banner that gets a higher CTR and Conversion rate, you deserve more for it, and it makes sense that the advertiser pays more. And vice versa.

    The problem is, that as the publishers that most of us are on DP, we tend to only see our side of the coin, when in fact, there is another one. If we bear that in mind when working on our sites, we can enhance the rates we earn.
     
    nick-a, Nov 3, 2007 IP
  5. john269

    john269 Notable Member

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    #5
    I think it's better this way in that if you have good traffic you will get paid higher, but if your traffic is very poor then you shouldn't deserve the same earnings as someone sending top quality traffic.
     
    john269, Nov 3, 2007 IP
  6. mojomovies

    mojomovies Peon

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    #6
    I couldn't agree more, I think the revenue model that we're starting to see is definitely the way to go.
     
    mojomovies, Nov 3, 2007 IP
  7. ruffnat

    ruffnat Peon

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    #7
    ...so then why don't they just stick to CPC if that is what is going to be the determining factor in the end anyways?
     
    ruffnat, Nov 3, 2007 IP
  8. Brennan

    Brennan Notable Member

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    #8
    Some people may find it more cost effective.
     
    Brennan, Nov 3, 2007 IP