In CPM, C is for Cost, P is for Per and M is for Mille. Mille is a Roman word which means thousand. CPM has nothing to do with clicks. CPM deals with the number of times an ad is displayed on any website. If your advertisement is shown on a website a thousand times then you will have to pay the publisher otherwise there is no need to make any payments. There are several benefits of using this advertising technique which is given below separately for the publisher of the ad and the advertiser.
Benefits to the publishers: CPM advertising is beneficial and profitable to both the publisher and the advertiser but if you go deep then you will come to know that the publisher of the ad is getting much more profit than the advertiser or the owner of the ad. This is because publisher puts the ad on his website and is paid for every thousand views. View means there is no action to be taken on the ad. The ad should only be viewed and that’s it. When a visitor opens the site to view the ad then the count of page view also increase and when the page count increases publisher of the ad gets money. In this way publisher gets the money from page count as well as from the advertiser for every thousand ad views. This proves that CPM is more beneficial to the publisher than the advertiser.
Benefits to the advertiser: In this method success and profit is not guaranteed to the advertiser. The advertiser only gets paid when the user clicks on the ad and goes to the website of the advertiser and then buys any of his product or service from his website. Therefore to generate profit advertiser has to really work hard. The first thing which advertiser must do is to make the viewer of the ad to click on it. He can do so by making an ad according to the user’s taste and interest. The advertiser should also place that ad on the right website where more views and clicks are accepted. After that the advertiser should make his website more attractive and interesting for the user so that the visitor of his website stays there for a while and buys something. If an advertiser succeeds in doing so then this advertising technique will become very beneficial for him.
Starting a CPM advertising: CPM is now not only confined to internet only. It is also being adopted by different television also. If an advertiser wants to play his ad several thousand times than he will have to pay for every thousand time the ad is played on television. First a message should be made on that ad and then it should be displayed on different banners or pop ups. After this the advertiser must select the medium on which he wants the ad to be displayed. Key ingredients to the success of CPM campaign is to make right message for right people and then place it at right place on right time.