Before pay-per-click advertising was the norm, people who wanted to advertise online did it through cost-per-impression advertising.
What this fundamentally means is how many eyes might see your ad on a particular website. It was (and is) a common form of advertising in online newspapers (especially those who have a printed version as well) as it is similar to the advertising rates based on circulation.
The cost per impression is often measured using the CPM (Cost per Mille – or cost per 1000 impressions). The amount paid per impression is calculated by dividing the CPM by 1000. For example, a $10 CPM equals $.01 per impression.
With the advent of pay-per-click (PPC) Cost-per-impression advertising has become less common, but that doesn’t mean it doesn’t have its benefits.
1/ It is especially useful on very targeted websites. For example, if you need to get the attention of business owners for branding reasons, but you don’t necessarily need them to click on to your site, then CPM advertising on a business website might be just the ticket.
2/ Often print or broadcast media will give advertisers a deal on CPM advertising on their online version as a loyalty bonus for booking offline spots.
CPM is also very useful for those of you who are planning on monetising your website – but only if you generate plenty of traffic.
The advantage to CPM over PPC advertising is that you aren’t relying on quality ads to generate clicks – you will get paid for the number of people who see the ad, not just those who click through. And advertisers know that PPC means they get free advertising right up to that point.
If you are interested in developing some CPM advertising for your online business, or if you would like to monetize your site, then contact Direct Sites Online on email@example.com.