CPM advertising is a way to describe how much an advertiser charges per 1000 views. This acronym means literally “cost per mile” and the word mile is the Latin word for thousand. This commonly used term is one that is used on line as it pertains to page views, and also in television and radio spots to gauge views or listeners. This is only one type of advertising that is out there.
Two other types of advertising is CPA and CPC. These are “cost per action” and “cost per click” respectively. They are used to give a rate for how many times a potential customer clicks on an add, or in the case of CPA, fills out any number of forms or purchases a product.
CPM focuses completely on page views and on the web in particular this is right in line with the focus of many online businesses. The web is a wonderful pallet to advertise on, and CPM offers a great way to gauge a fair price for advertisers.
These advertisers are often put together into what is called a CPM ad network. This network will act as a go between between the advertisers and the people that have the web pages to be advertised on. If a person was selling oranges for example, they would want to find a web page related to or about oranges to try to maximize the clickthroughs to their website. If they found such a website, they might offer a CPM program where they pay the website owner a rate for every time the ad is viewed on their website.
The only thing you really need to get started in CPM advertising is a product to market, a group of excellent ads, and an ad network to find you targeted webpages. You could always find these pages on your own as well. This is not always a benefit, however as the CPM ad networks allow for some advantages. An example of these advantages would be any number of ad templates, and even custom built ad creation.
From the other side of the fence, the website owners themselves can generate a nice monthly or yearly income by signing on with these ad networks. If they have a great website with tons of traffic, they stand to make good money by signing up with a CPM ad network. These CPM ad networks can be found with any simple online search engine.
CPM advertising and CPM ad networks are wonderful examples of the free market and the incredible earning power of the internet. Without even leaving the comfort of your own living room, we can set up a website, generate traffic with unique and compelling content, and then make money without even being present. The ads will generate the income and all we have to do is keep the website up. CPM advertising is a wonderful way to generate a second income, or even a chance to build a business from the ground up.