CPM Banner Advertising (Cost per Million) Online

For Advertisers using CPM, comparison to PPC

When it comes down to it, there's a big difference between PPC advertising and CPM. If you are an advertiser, you can start a campaign for either. With CPM, you pay money for a million ads to be shown. There may or may not be a return on this CPM - for the million ads shown, maybe 100 of them will click through to your site, or maybe 1000. Since you are simply paying for the ad to show up a million times, what happens after that is then up to you to track and see if your CPM advertising resulted in a return or not.

PPC is sometimes better then CPM; CPM may be better for you depending upon what your website does. For instance, if you own a wheel website that sells wheels, you may consider PPC advertising instead of CPM. This is because you are more interested in selling wheels then people clicking your ads; you need an ROI or a return on investment.

If you have a site that only makes money through ads, you may consider CPM over PPC as it's cheaper. Services that do PPC (such as Adwords) also tend to deliver more targetted traffic to your site; therefore they are more likely to result in an ROI if you are selling products.

For Publishers, comparing PPC to CPM

If you are pasting ads on your website you will always want to go with PPC over CPM. It only makes sense - because with PPC you will get paid for every click. Wheras with CPM you get paid for every million ads you show. So you'll need a super site with thousands of pages to be able to even meet one CPM in a profitable time period.

In essence: CPM is cheap. Consider it to advertise your site for cheap, and that's it.
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