How CPM Works ?
CPM ads are totally based on impressions made by visitors on web page. Their is no difference between the ads type it is same as CPC ads but CPC depend on the click andCPM depend on the Impression only. But if any ads networks or particular banner contain both CPC or CPM then it is called as eCPM. These CPM ads required effective visitors flow on web page to earn revenue. In simple word suppose if your blog or site having CPM based ad banner then for every total 1000 ad impressions you will earn revenue. But these CPM rates are make Flat rate Based or Bid rate based depend on the advertisers choice. But these CPM rates are derived as
On the bases of total budget set by advertiser to the total ad impression let take an example
If Cost for Advertising Budget is of $ 1,000
we want to reach estimated Audience is 1,000,000
CPM = Cost to an Advertiser x 1000 / Impressions.
CPM Rate = $1000 x 1000/1,000,000
CPM Rate = $1
These CPM rates are only an estimated for example it may be lesser or more depend on the advertisers.
So this example explains that if the advertiser offers $2 for cpm rate it means publisher will earn $2 for every 1000 impression from your web page.
Difference Between CPC and CPM
In this article i try to explain in short about CPM and its working. Some of the best CPM networks which i decide to explain in next article. If you enjoy this article and learn somthing then must this with friends and others.
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