Just Mike

What Is CPM?

// April 21st, 2010 // Uncategorized

Summary: CPC can be abused and CPM can be misleading as a fix depending on the site.

Google ads are seen on most sites you visit.  When you click on that ad then the owner of the ad pays Google money and then shares it with the site owner.  CPC is paying per click.

CPM is paying per 1000 impressions.  CPC can be abused.  You set a dollar limit to be spent each day but what if your competitors clicks your ad wasting money resulting in less possible clients seeing it?  CPM takes care of that.

So what is a fair price?  Well it depends.  Many sites are somewhat broad.  A technology site like Gizmodo talks about all the cool tech and what you can do with it.  I don’t care about Apple products because I don’t own one.  My visit to the site is worthless.

A site like Mashable.com  has ads for things I don’t understand though I love their social media coverage.  I honestly don’t even see the ads anymore except for the one they fit between posts.  I have been trained to ignore them even though they blink.  I came to see what is happening with social media and I know where that information is.

The factors for deciding a fair price for CPM

• How narrowly or specifically does the site fit your business?
• Position of ad. Many Newspapers ads are made to look like article and are forced to say somewhere that it is an ad because it can be so convincing.
• What demographics does it bring?

For something to make an impression, I have to see it.  We are built to not see the thousands of things that are around us.  When we buy a new car we see that car everywhere because it is part of our focus now.  I told someone about the bumper sticker with the Oregon State outline and a green heart in it.  They told me they never saw it before but a week later they told me they were seeing it everywhere.