Google Cost Per Impression (CPM)

Google cost per impression is paying per 1,000 displays of your ad. The equation is M=1,000 impressions, (M is the Roman numeral for 1,000). So if you are paying $5 per 1,000 impressions and you get 10 clicks, you are paying $.50 cents per click, a very good price for a visitor. The problem with paying per impression is what if you get 10,000 impressions and only 2 clicks? Now you paid $25 dollars per click, an unattractive prospect for most.

When dabbling in the world of CPM your ads and marketing campaign (along with landing page design and layout) have to be perfectly optimized to get the most out of your money. CPM advertising is done mostly by large corporations that have professionals who know how to fully optimize ad campaigns and reap the benefit of cost per impression advertising. If you’re doing placement targeted advertising it is imperative to make sure that your ad is above the fold. If your ad is below the fold and 1,000 people visit that website and don’t scroll down, you still pay for the 1,000 impressions and no one has even seen your ad. When we set up CPM advertising we study each individual website that the ad will be placed on. Make sure that the ad is placed above the fold and is specifically targeted to your product or service. In most cases the ad must be flash so that it gets the attention of the user on the website.

The benefit to doing CPM advertising is to reduce your cost per click. In the event you must bid $1.50 to get your banner ad on a website or $10 per impression for the same placement, you are gambling that you will get at least nine clicks or more on the cost per impression campaign to make paying the CPM price reasonable. Think of it like this. You can invest money into a trust account knowing exactly what your interest rate and return on investment will be. On the other hand you could decide to invest your money in the commodities or stock market where you may or may not make more money.  We do not recommend that inexperienced users develop a CPM campaign on their own.  Remember this CPM=Gambling.

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