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Thursday, July 14, 2016

CPM | When It Is Good For A Publisher

The word CPM is the abbreviation of Cost Per Mile or Cost Per 100 Impression. To an Advertiser, it refers to the amount they will have to pay when their advertisement gets 100 impressions. An advertiser will want to choose this ad pricing mode if the purpose for it’s advertise is just to create or increase their brand awareness. For example, an advertiser who just want to make the public aware of the start date of their promo of who just want to keep or place their brand in the “Top of Mind” of the public will find CPM more favorable.

As a publisher, this ad pricing/billing mode is good and encourage if you have a good number of visitors/traffics, and those visitors spend more time in your site/blog. This is because, the longer they stay, the more ad impression you get, and the more revenue. But if you are running CPC, it means you will be getting more ad impression but less revenue since your site/blog visitor are more incline to click on internal links (links to other content of your site/blog) than external links (which include adverts).

We feel that the CPM billing mode is good to a publisher if the publisher is having few Click Through Rate on ads. But if the reverse is the case, then CPM will not be the best of option to a publisher. So we recommend that you monitor CTR metric of your ad network reporting, because it may be the key to increasing your revenue.

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