A lower CPM isn’t always a positive sign as it may indicate low-quality traffic.įor advertisers, having a higher CPM doesn’t mean they’re getting higher earnings, as some ad inventory may not be sold. What is a Good CPM?Īs with most online advertising metrics, you can’t determine if a CPM is good or bad based on just a single value. Moreover, in some cases, that’s precisely what the product demands. Likewise, cost-per-engagement advertising needs some type of action beyond the initial impression, such as taking a survey or playing a mini-game.ĬPM in advertising removes all these latest tactics and takes advertising back to fundamentals. Therefore, simply looking at the ad isn’t enough in this scenario. The conventional CPM advertising model somewhat differs from the latest forms of mobile and in-app advertising as it doesn’t need a particular outcome from customers to be considered complete.įor instance, in cost-per-completed-view, advertisers don’t pay publishers until a video ad is viewed completely. For instance, summer can see a drop in spending, especially in Europe, as many users take time off work for holidays.ĭifference Between CPM & Other Advertising Metrics Seasonality – Traffic has some seasonality within different industries, which leads to variations in CPM rates.A bigger supply will result in lower bids for those ad units. Number of ad units on the page – A higher number of ad units on the page will drop the CPM rates.Past performance – Advertisers value traffic quality and are willing to pay higher CPMs for placement on websites that drive conversions and a higher return on investment (ROI).A publisher with a low viewability score will see their CPM rates decline significantly. Ad viewability – For display ads, viewability can be defined as having at least 50% of the advertisement on screen for at least one second. ![]() But the most common ad sizes, even though not the largest, also yield higher CPMs. Ad size – Typically, larger ad formats have a higher CPM as they are more prominent and more likely to trigger user action.As more companies take brand safety into account when assessing ad placements, higher-quality sites can command higher prices as well. ![]()
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