<p>WHY PPC ADVERTISING IS BETTER THAN CPM ADVERTISING
The piece below has been taken from marketer Naresh Vissa’s #1 bestselling book FIFTY SHADES OF
MARKETING: Whip Your Business Into Shape & Dominate Your Competition.
Google was the first big company to introduce a brand new form of online advertising for
publishers and advertisers to test in a multitude of ways.
Now, most social networks sites that monetize off advertising quantify ad spend through
PPC (pay per click) and CPM (cost per thousand) metrics without getting Google involved.
They run their own advertising programs.
For advertisers, pay per click advertising is recommended over cost per thousand
advertising. Here’s why…
CPM advertisers generally pay on a historical average per thousand views. For example, if a
site gets 2,000 hits a month, and if an advertiser wants to advertise a banner on the site and
pays a CPM (cost per thousand) of $50, then that means the advertiser will pay $100 to
advertise a banner on this site ($50 per thousand hits means $100 per 2,000 hits. The
algebraic equation to solve this would be $50/1,000 hits = $x/2,000 hits. Solving for x gets
Advertisers pay for what they get in PPC. The more clicks you get (which is what you want),
the more you pay. The fewer the clicks, the less you pay. All parties win.
With CPM, there's no telling what you'll get in return. You could pay a lump sum up front
and get nothing back.
Additionally, ad-blocking software has curbed the visibility of web advertising. Ad blockers
keep users from viewing ads. This means CPM advertisers stand to be paying for traffic that
they won't even be receiving. This is a huge waste of advertising dollars!
www.whatrunswhere.com is a good subscription service that provides detailed intelligence
on what and where your competition is advertising. You can copy what’s working for them
and stay away from places where their campaigns have failed. This is the closest thing to
buying inside information on your c