Pay Per View Advertising

CPM is "cost per thousand" ad impressions, an industry standard measure for selling ads on Web sites. This measure is taken from print advertising. The "M" has nothing to do with "mega" or million. It's taken from the Roman numeral for "thousand."

This form of advertising is aimed toward branding your shopping cart, building a long term supply of interested visitors.

Where Pay Per Click (PPC) advertising only costs you if someone actually clicks to enter your site, Pay Per View (CPM) advertising fees are calculated on how much you are prepared to spend to have 1000 visitors view your ad... regardless of whether they enter your site.

CPM's Greatest Strength

While it had a rocky start, CPM-based advertising programs are not without merit. While PPC encourages advertisers to indiscriminately place more and more ads, CPM does quite the opposite. Because the advertiser pays for every impression, he's encouraged to pay more attention to both the content of his ads and the places that they appear. This additional imposed advertiser responsibility has the side effect of continuously increasing ad quality, which benefits both the advertiser and the viewer.

A Better Approach: Targeted CPM

A new approach, called "Targeted CPM", combines the most desirable features of conventional CPM and PPC programs. Here are some of the most beneficial features of a properly designed Targeted CPM program:

  • Presentation
    Ads are presented in an attractive and consistent format that encourage viewing. Ads are only placed on the most visible and active portion of the page, and a limited number of ads are allowed to appear on any one page.
  • Relevancy
    Ads consist of a headline and text message, which are both matched to the content of the displayed page. Advertiser-supplied keywords are also used to influence matching, but the relevancy of content is the primary controller of the ad's placement.
  • Responsibility
    Fixed CPM pricing is used, which encourages the advertiser to give more care to the content of each ad. This further improves the overall relevancy of ads in the program, and improves viewer interest.
  • Accountability
    Every impression and click-thru is accurately tracked, so that the advertiser has complete feedback on each ad's performance. And due to the fixed CPM pricing, fraudulent clicks have no impact on the advertiser's cost.
  • Ease of Use
    The text-based format of the ads makes it especially easy to create and modify the advertising message. And the fixed rate pricing and absence of keyword bidding eliminates the need for ongoing bid maintenance.

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