4 ms·
The Tale of the $340 CPM
- zaidf 14y agoWhen we back these numbers out into CPM terms, our platform is doing a $340 CPM! To give some perspective: $20 is a very high CPM for Display and $100 is a very high CPM for Email. Nit pick but important enough to confuse me and may be others: Saying you are doing $340 CPM suggests you are making an ad publisher $340 CPM. What you really mean(I think) is that you are making the advertiser $340 in revenue per 1,000 impressions(which btw is incredibly good!). It gets more confusing when you state: To give some perspective: $20 is a very high CPM for Display and $100 is a very high CPM for Email. You really just want to say that here's an advertiser that spends $x CPM to advertise using our platform and in return he makes a profit/revenue of $y on that $x spend.
- austin_e 14y agoThanks zaidf. Sorry about the confusion. We actually mean that we (as the platform) are making a $340 CPM. The advertiser in this case is making closer to a $500 CPM.
- GiraffeNecktie 14y agoThe "C" in CPM stands for "cost" and therefore can really only be used to talk about expenses, so it totally doesn't make sense to says "we are making a $340 CPM".
- austin_e 14y agothanks for pointing that out. acronyms aside, those are the numbers.
- sardonicbryan 14y agoOne term my company uses (not sure if it's an industry standard) that captures what you're describing is "yield," which is basically revenue/cost per user. Ultimately, what "CPM" you are making your advertisers is hard to really evaluate without knowing how much they are paying per impression or click. That said, sounds like you guys are on the right track, now just have to sustain this success and scale it!
- austin_e 14y agothanks sardonicbryan. "yield" makes more sense. scale is the name of the game!
- zaidf 14y agoExactly. Only time I have heard $x CPM is when ad networks tell me they can make me $x for every 1,000 impressions of their ads on my site. Overall that post remains pretty confusing.
- DanEdge 14y agoYeah but CPM is also used to denote revenue. I notice Google now uses RPM in their Adsense reports which makes more sense but they used to (from memory) use the term eCPM.
- pbreit 14y agoPro tip: make sure there's a link to your home page from your blog.
- austin_e 14y agogood point. we're on posterous.