CPM-based advertising can be a cost-effective alternative to CPC deals. To illustrate this point, let's compare the overall expense of two similar campaigns. In CPC-based advertising, you pay for each click your ad receives. Let us say that you are spending $1 for each click; 10 clicks costs you $10. In a CPM-based campaign, you may pay $3 for 1,000 impressions. If your ad receives a click-through ratio of just 1 percent, you're paying $3 for the same 10 clicks. Current results have shown that text-based CPM ads often receive more attention that traditional banner ads. In fact, the average view time for a text based ad averaged 7 seconds, while a graphical ad only averaged 1.6 seconds. Text CPM ads are starting to become more popular and may be a viable alternative to CPC-based advertising. CPM-based advertising may be more suited for your company if your desired keywords are very popular and expensive. Instead of paying $5 for a single click, you could but 1,000 ad impressions. This can add up over time. Although click-through ratios for CPM-based advertising are low, click-throughs aren't everything. Even an unclicked (but viewed) ad can play an important role in promoting your company. A well-designed ad will catch a viewer’s eye and may promote brand recognition, even if the viewer doesn't click. Targeted CPM-based advertising is also beginning to catch on, which may even the playing field for advertisers looking for a CPC alternative. If you can display your ad to a targeted audience, your click-through ratios will improve. Many sites offer targeted CPM-based advertising options, and you should be able to find a service that will mesh well with your company’s offerings. Targeted advertising greatly increases overall effectiveness of your ads, and the addition of CPM-based targeted advertising may be a great benefit to many small companies. The downside to CPM-based advertising is that the minimum purchase of impressions could be more than your company requires. While $5 per thousand impressions is very appealing, a minimum purchase of one million impressions can quickly scare off many businesses. However, there are companies that offer low minimums, and it pays to do your homework before selecting a company that requires the advance purchase of a large amount of impressions. If your budget allows for it, test several different methods of advertising at the same time and track the results. This way you can see which method is best suited for your particular company and gives you the best value for your advertising dollar.
i would like to share something CPM advertising networks behave pretty much as PPC networks, except that you get paid according to the number of impressions (i.e., page views) that the ads displayed on your site will generate. CPM stands for Cost per Mille, and it refers to the cost for 1,000 impressions. A blog that generates 100,000 page views monthly displaying an advertising banner with a CPM, therefore, will earn 0 monthly. CPM rates vary with the network, the position of the ad and the format. The better the network, the higher the CPM rate (because they have access to more advertisers). The closer you put the ad to the top of the page, the higher the CPM. The bigger the format (in terms of pixels), the higher the CPM. You can get as low as ,10 and as high as per 1,000 impressions (more in some special cases). CPM advertising tends to work well on websites with a high page views per visitor ratio (e.g., online forums, magazines and so on).
