An Online Advertising Pricing Models
Today’s digital advertising is filled with many different pricing options. Just a few decades ago, there only used to be two options: CPC (cost per click) and CPM (cost per 1000 impressions). Now there are dozens. Indentify which of the many different digital advertising pricing models makes the most sense for your business Some of them are explained below: What is CPM? Cost Per Mille . Usually refiects the price of 1000 banner impressions in dollar currency. The CPM model refers to advertising bought on the basis of impression. Payment depends on the number of impressions solely. For example, a banner is being shown 100,000 times at CPM of $0.5, means that the payment by theadvertiser to the publisher would be 100,000 * 0.5 / 1000 = $50. Advantages - The advertiser knows exactly how many times the banner will be shown, and what would be his daily / total costs. - Common model when buying media against a specific URL / site / ad spot. - CPM is ...