Thursday, November 13, 2008

Cost per thousand impressions

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Cost of reaching an audience on a per-thousand basis. media planners use cost per thousand as a basis for comparison of the cost of advertising in various media. However, this comparison is only valid if the various media all reach the same target audience. The cpm is computed by multiplying the advertising cost times 1000 and dividing by the total audience

Many bloggers and webmasters are familiar with AdSense and its potential to generate excellent revenue for blogs and web sites. Unfortunately, many bloggers and webmasters focus too much on Ad Sense and forget that there are other types of advertising — i.e., CPM advertising — that could improve their blog monetization further, and without affecting.

Cost-Per-Click (CPC) and Pay-Per-Click (PPC), comes in. On the Internet, you CAN track everything, and with relatively inexpensive technology. But the most important aspect is that you only pay when someone clicks the Ad! Think about that for a moment. In the example above, if your ad is on page 156 stuck down in the corner between editor notes, how many of those 500,000 in the circulation are really going to see your ad and take action? Well, with CPC, you are guaranteed that if they don't take action, even if they see the ad, you don't have to pay a cent.

Imagine that, only having to pay when the ad placement actually gives you value.
It is revolutionary and it is the reason Google is such a Wall Street darling. There are still a lot of people out there not utilizing this medium, or any other online advertising, even people with online programs. This is despite the basic fact that the vast majority of people in all age groups, all demographics, all economic situations, all use the Internet and search engines as a primary tool in researching their degree options.
The advantage to CPM advertising are that you aren't relying on quality ads to generate clicks. Advertisers are getting smarter and they're buying Cost-per-Click advertising designed to promote their website without actually encouraging a click. They know that they are getting free advertising right up until the point where people click the link.

This is particularly true of graphic ads where the advertiser is creating brand recognition. A movie review website for example should focus on impressions rather than clicks. A reader who sees an ad may go to a movie without actually visiting the movie studio website. This is particularly true when they see the same ad dozens of times. The movie studio is getting value every time the ad is displayed, but only paying when the ad is clicked.


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