What is CPM ?

Discussion in 'CPA' started by Diamond Damien, Sep 20, 2013.

  1. Diamond Damien

    Diamond Damien Owner BlackHatWorld Staff Member Premium Member

    Oct 27, 2005
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    What is CPM?
    CPM is a term related to the number of times an advert is displayed to a viewer. Back in the bad old days of print media and even, to some extent, TV. These numbers were guesswork at best and outright lies at worst. Once it was explained to me by a bloke in a suit as follows ?If a newspaper is left on a train then 15-20 people will read that newspaper therefore the cpm rate you work to for your ad spend shouldn?t be based on the number of copies we sell but over 20 times that as each newspaper (and he was using the number printed!) is seen by the person reading it and all those around him / her on the train??? HAVE you EVER picked up a ratty old newspaper on a train (when sober?) ? Let alone one that looks like it?s been through 15 pairs of sweaty commuter hands? Needless to say that guy didn?t last long, but you get my point. It was over exaggerated, there is no way they could be on every train in the country counting the number of times their media was read every day.

    cpm insert.jpg

    However now we can determine CPM much more accurately online and this really bugs the old school ad exec?s because the publisher can deal directly with the advertiser with real numbers and real time feedback and those ad exec?s don?t have to be involved. If it doesn?t work for the advertiser they have direct exposure through their own stats and move their ad spend elsewhere.

    So I?ve still not answered your question - what exactly is CPM? Literally broken down CPM is an abbreviation for Cost Per Mille (note 2 l?s, we?re not charging you for distance traveled!) Mille is latin for thousand - told you it had been around for a long time! - In online advertising CPM is Cost Per Thousand IMPRESSIONS - Why not CPMI? That?s for another discussion. An impression is where a single ad is shown to a viewer. Now there could be 10 people looking at the same screen but the advertiser only gets charged once. Although with a camera in most new display devices from the MacBook Air to the most basic Chromebook it can?t be long before one aspiring individual works out how to monetise based on number of people viewing?? If that person is a BHW member let me know and we?ll JV ;)

    What?s above the fold / line?

    OK that?s more simple to explain - open a webpage what you see at the top of the page is above the fold / line. As soon as you have to interact with the page to see content further down the article - that?s below the line. Pro?s / Cons above the line typically costs more, but strong and targeted below the line advertising often produces a better ROI if you get your targeting right. Think about it, do you chose to buy the product you are reading about before you?ve read the article (above the line) or after you?ve finished it (very often below the line)?.

    What?s DFP? - That?s Google showing off, DoubleClick For Publishers. Whenever you buy or sell ads on a cost per impression basis you need to have confidence in your stats. Confidence as a publisher to make sure you?re getting paid for every impression and as an advertiser to ensure you?re getting what you paid for. Third party tools take away the concern about bias. We went through a few and I don?t want to blow smoke up G?s ass but, but DFP is much more than a stats engine but I?ll get into that another day.

    BHW now offer above the fold CPM via DFP
    So I hope that answers your question and if you chose to advertise with BHW please complete our advertising form and one of our dedicated advertising staff will be happy to help guide you to the best advertising offering for your service. .
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