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2 Answers

CPM model

Asked by: F&F 455 views User Questions

Raw beginners question! Very new to the advertising game and need to find a good source of information about how to run a CPM advertising model site. I have looked online and there are countless short paragraphs on “CPM means cost per mille, etc….” but nothing that really helps me understand how you go about starting to offer CPM advertising and then billing it as a new enterprise.
Obviously AdvertPro handles it but also does not really explain the concept in the help manual, just the setup. I am struggling particularly with the following as an example….
Let’s say my site has 1 page and gets an average of 100,000 page views a month. I have 1 rotating banner and want to charge £10 CPM to keep it simple. Does that mean I can only sell upto the total 100,000 page views each month presuming I have 4 or 5 clients that want 10 or 20,000 impressions each for example?
What happens if the site only gets 60,000 page views that month? How do I then bill the clients who have not yet had all their impressions on a regular monthly basis if there is the chance they will not always get their total impressions in that month?
Any help with getting an initial understanding of this please would be gratefully received!
Many thanks.

2 Answers

  1. thomashvitstein on Feb 25, 2009

    I’m not selling ads on my own site, but I am updating ads for other sites, and the usual pracsis there is to compensate for underdelivery. Give more ads on other formats, newsletters or expand the campaigns in time. This pracsis seems to work fine here in Norway. Don’t know how it works in your country.

    But of course you must be careful so you’re not overdelivering all the time, couse then it is not possible to compensate.

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  2. renegade_mike on Feb 25, 2009

    As Thomas said, you can always extend the campaigns if you have a low traffic month and under deliver.

    Something else you can do is temporarily add an additional ad zone on your site to give you an immediate boost.

    For example, you might have a 728×90 at the top of your page. You could temporarily clone that to the middle or bottom of your page.

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