CPM Simplified | what is CPM


CPM simplified 



CPM is something i hear a lot of creators say, but what does it mean. 

What is CPM

CPM stands cost per mille and is basically what you get paid per 1000 views on different platforms / your ad revenue earnings, so if you see the CPM is $2 that indicates that you will receive an average payment of $2 for every 1000 views you get. This term is used to simplify the revenue that creators will be earning.

Why is some higher than others?

Most companies are selective where they want their ads to be published,  but these companies are also willing to spend more money if they can advertise to a certain niche. 

Financial niches are the highest paying in terms of CPM but the views received on content are normally lower compared to music or entertainment niches that's why these niches' CPM tend to be lower.

CPM vs CPC

Some ad networks use CPC and not CPM or a very low CPM. CPC is the cost per click , this is the rate you will receive for every ad that's clicked on your content. Wordads uses a CPC approach and creators earn most of their revenue this way. Worads does not pay a lot for CPM compared to other ad networks but they do pay more than other ad networks for CPC.

Why is CPC higher compared to CPM

CPC is very high compared to CPM with some reaching an all of high of $25 per click, but why?

Most viewers will only view the content they came to watch and will exit the application or blog once they finished viewing the intended content.

Because less people click on the ads , ad networks tend to pay more for the CPC because its less clicks they have to pay for compared to CPM.

With CPM creators earn revenue for every view on their content. Views are normally very high , with an average of tens of thousands to hundreds of thousands for popular creators with some receiving even millions of views per month. So if creators were paid the same rate for CPM as the CPC the ad network would not be able to ask a very competitive ad rate pricing for adverts and will not be able to make as much profit as they do.

Why CPM is best?

CPC offers a higher rate and can be very profitable if the viewers click on the ads but CPM is preferred by most content creators because people don't like ads and most don't click on ads. Views are more consistent , viewers will come back for more content if they enjoyed it and will even share the content with friends and family if they loved it.




 

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