Question Asked: How Do I Determine A Good CPM For Ads On My Website?
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Nov 7th, 2008 |
First, for those that don’t know, let’s cover what a CPM is. A CPM is the cost per thousand impressions for an advertiser (a company) to show an advertisement (usually a banner, varying in size) on a publiser’s (the person who owns the website) website.
CPMs can range from anywhere as low as a nickel, to in upwards of several hundred dollars.
The price you should ask for your CPM should be reasonable for the amount of traffic, impressions, and click throughs you can offer your advertisers.
We’d all love to be able to charge $100 CPMs for our sites, but that’s just not realistic.
A good formula to determine what you should charge is this (per ad): Pageviews per day, divided by unique visitors times 1 dollar.
So, for example, if you have 10,000 page views per day, and 6000 unique visitors, a good CPM for you would be $1.66.
As your site’s traffic increases, you’ll find that advertisers are willing to pay more to get their ad on your site. Eventually, you’ll be able to get $20 per CPM, and get some really targeted ads to your content. Serving multiple ads on your pages is a great way to make some money, especially with a popular website.
If you get to even a $5 CPM, run 3 ads on your site, and have 200,000 page views per month, you’d make $3,000 per month. (3 * 5 * 200) That’s not bad for a real job, let alone writing a popular blog!
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