Honhar Engineer

Honhar Engineer
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Sunday, July 7, 2013

What is CPM ( Cost Per Thousand Ad Impressions ) Networks

CPM is known as Cost Per Mile or Cost per Thousand Ad Impressions and also called CPI. CPM term is use to define 1000 ad impressions where 'M' is From Roman Word which means Thousand. So 'M' term is use in CPM.  Revenue from these types of Ad is depend upon total number of view or impression make by using site or blog. Ad i already discuss about many different methods and processes to make money from advertising. From All those methods CPM is an effective and best method for earning review throw your site or blog. Many Advertisers or Publisher use PPC networks. As in earlier post i ready discuss about what is PPC and Some Best PPC networks.

How CPM Works ?

CPM ads are totally based on impressions made by visitors on web page. Their is no difference between the ads type it is same as CPC ads but CPC depend on the click and CPM depend on the Impression only. But if any ads networks or particular banner contain both CPC or CPM then it is called as eCPM. These CPM ads required effective visitors flow on web page to earn revenue.  In simple word suppose if your blog or site having CPM based ad banner then for every total 1000 ad impressions you will earn revenue. But these CPM rates are make Flat rate Based or Bid rate based depend on the advertisers choice. But these CPM rates are derived as

CPM =  Advertiser Budget cost / Total Ad Impression

On the bases of total budget set by advertiser to the total ad impression let take an example

If Advertising Budget is of $20,000
Total estimated Audience is 2,000,000
Then  ($20,000  /  2,000,000)  =  0.01
CPM  = 0.01  x  1000 (ad impressions) = $10

These CPM rates are only an estimated for example it may be lesser or more depend on the advertisers.

So this example explains that if the advertiser offers $2 for cpm rate it means publisher will earn $2 for every 1000 impression from your web page.

Difference Between CPC and CPM

CPM Advertising is an another type of relationship between advertiser and Publisher. This relationship in the same way like CPC but the only difference between these programs is way of ad monetizing. Means in CPC networks revenue sharing method between advertiser and publisher is based on every click. But in CPM networks revenue is shared method between advertiser and publisher is based on the total ad impression or page view. CPC ads is and effective way to earn money from less amount of visitors but CPM don't perform well on low visitors because due to low visitor your site makes less page view mean you will earn less. So CPM sufficient amount of visitors. CPM is also an popular and best method to make money from website or blogs

In this article i try to explain in short about CPM and its working. Some of the best CPM networks which i decide to explain in next article. If you enjoy this article and learn somthing then must this with friends and others.
If you have any doubt feel free to share you question in below comment box. 
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