What is CPM?
CPM stands for Cost per Thousand Impressions. With per impression advertising, you will make money based on the number of times the banner is loaded on the site. For example, if your web page gets 100,000 pave views monthly, you could show the banner 10,000 times that month (presuming every page has that ad).
Whether you are buying or selling banner ad impressions, keep in mind that the rates are provided for Cost per Thousand. The math used in CPM banner advertising is simple. An $8 CPM implies that you will get $8 per 1,000 banner ads shown.
Suppose you get 10,000 page views in a month. If you were able to sell 10,000 impressions at $8 CPM, the total earnings would be $80 monthly. ($8 per thousand x 10 thousand = $80). The rates for CPM vary. It starts at $1 and goes up to $20 CPM.
There are two ways to sell ad space: do it yourself or by joining
Banner networks are organizations that work like middlemen between the advertisers and your site. They do the work of selling the ad space to advertisers. In return they will get a percentage of the money.
This is ideal for those who don’t want to mess with the details. The higher CPM rates are for those ads aimed directly at your site. The CPM is around $10 to $20.
Selling Ad Space Yourself,
Top Online CPM Site |Average CPM Rate | TribalFusion CPM Rate
Selling the ad space directly takes more work, but you get all the money. There is another advantage; the advertiser is interested in putting a banner ad, so they are willing to pay more. This is most effective with specialty sites that are after a niche market.
If you are going to sell banner space, make sure you have software that can track the page views you get. To be approved in the larger networks, you’ll need to have a specific number of page views. The requirement will vary per network.
It takes some time to understand how CPM banner advertising works, but it will be worth it. As long as the content is of good quality, you’ll be getting ads and making money. The key is in the content of your site. If it’s good, people and advertisers will come to it.