What is CPM?What is CPM and what does CPM stand for? CPM marketing is when advertisers pay publishers for ad impressions. Instead of paying every time someone clicks on the ad this form of advertising pays every time the ad is seen. CPM stands for “Cost Per Mile” with Mile being Latin for 1,000. In other words CPM = “Cost Per 1000”. CPM Math What does the CPM math look like? Whether you are an advertiser or a customer you can use this formula to determine the cost of a campaign. (Number of Impressions)/1,000 *CPM So if the CPM is $3 and the ad is seen 12,500 times the cost would be (12,500/1,000)*3 or $37.50. Advertising CPM At first glance CPM doesn’t look like it would be able to compete with pay per click because you pay every time the ad is seen instead of every time the ad is clicked on. But it is worth testing this theory out, because you may find it to be a lot less expensive. If you are paying $1 per click and 5 people click on the ad you spend $5 for 5 visitors. On the other hand if you pay $2 CPM for 1,000 impressions and have just a 0.5% CTR those same 5 visitors would cost you just $2. Added up over hundreds of thousands of impressions or more and that can be a big difference. If your budget allows it can be worthwhile to experiment with different types of advertising to see which one is the most cost effective and to reach a broader audience. CPM marketing for Publishers There are advantages of CPM marketing for publishers as well. For starters you can’t go wrong with this type of advertising. You do not have to position the ads to get the highest possible CTR, you only need to put the ads on the site and forget about them. Another benefit is that you can make money even with a low CTR. If you have a site like Facebook that gets a lot of traffic to it, but those people are not looking to buy anything then CPM marketing will probably work better for you then CPC. Like always testing is key. Setting it up So, now that you know, what is CPM and what does CPM stand for, the next step is to set it up. You can do this by either, contacting individuals and making agreements privately. Or you can go to one of the big CPM ad networks that brings everybody together for you, so you can concentrate on what you love to do. Here is a list of some CPM ad network to consider. • AdsDaq • Tribal Fusion • Adbrite • ValueClick • Ad Dynamic Return From What is CPM and What Does CPM stand for to Make Money With Affiliate Program
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