Does The CPM Model Fit Your Business or Offer?
Written by Pablo Palatnik on January 5, 2008
For those of you who don’t know, CPM stands for cost per thousand. Google Adwords has options for you to run ads on websites with this model as well as the largest ad networks in the world.
I was never a fan of the CPM model myself. Pay for every 1000 people that see my ad? I guess that’s the only model newspapers offer if you think about it, you can’t really perform an action from a newspaper ad unless you call or visit a website.
Advertising.com, AdDynamix, and others use this model and they do well at it. To be honest, I would have thought this would be a fading model for advertisers since we’d all rather pay per click (CPC) or cost per action (CPA).
AdAge reports revenue from display advertising will actually grow by 20% by 2009.
“J.P. Morgan is bullish on rates based on the cost-per-thousand viewers for graphical advertising, citing improved technology and monetization as reasons why display CPMs will accelerate by 4% in 2008. It also predicts CPM-based display ad revenue will rise 20% and reach $10 billion by 2009.â€
Now, if you’re talking about branding, the CPM basis isn’t all that bad all. You will get your name out, especially if you run banners through a good network that will get you banners on quality websites.
I like the CPM model for branding purposes and don’t see much of a benefit comparing to a CPC model if you aren’t trying to brand.
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