How Effective is CPM Advertising?
Friday, December 26th, 2008CPM advertising stands for cost per thousand ad impressions describes a type of ad where the an ad space is sold for a fixed rate over 1000 impressions.
These ads are usually presented to a general audience, not specifically targeted to a key word. For example, an advertisers banner would show when a user visited the home page of a web site. The visitor may be looking at a web site on cars and be served an ad selling travel deals.
The effectiveness of a user clicking on these ads is reduced as the ad is not highly targeted. Advertisers, depending on the ad broker, may place ads on sites that draw the most likely demographic to their product offering, but may not find the visitor in a specific mindset for the travel ad and therefore waste the impression.
The advertiser hopes that over 1000 impressions or more, a percentage of those visitors will be interested in the ad and click on it. Also, CPM ads are a great branding opportunity allowing an advertiser to get it’s name out on a mass scale.
CPM ads are usually cheaper then more targeted ads, allowing the advertiser to spread its message accross a broad spectrum.
Unless you have a massive budget or a large brand to build or maintain, CPM ads are not for most businesses.