4 ms·
killing CPM will pretty much kill the content providers. People are more or less ignoring ads at this point, so the CTRs and CPAs are tanking. Let's say you ha
by vaksel 17y ago
killing CPM will pretty much kill the content providers. People are more or less ignoring ads at this point, so the CTRs and CPAs are tanking.
Let's say you have 500,000 users, and each gets 10 ad impressions a month. Let's be honest, 500,000 users is a LOT, that's more people coming to see your site, than most local broadcast stations, yet they really don't make you that much money.
That's 5,000,000 views, at CPM of $2, that's $10,000 a month.
If we used that same 5,000,000 and switched to CPC, we'd get a CTR of about .1%. So that 5,000,000 views would net us 5,000 clicks. Let's be generous, and say each click is worth 50 cents. Bam, you only made $2,500. So your income has just been cut in 4. And that $2,500 will twindle since ads don't really change, so a user will only click them once.
If we used the same 5,000,000 views as CPA, the result will be even worse. People just don't like pulling out a credit card(at least not without checking other sites for a better deal). If your CPA is 1 action per 25,000 views, and you get $10 for each transaction, that's $2,000 worth of revenue. Bam your original $10K has been cut in 5. And remember, you'll need to find brand new offers every month, since the ads will get stale.
With an income of $10K/mo, you can focus entirely on your content, but with only $2,000-$2,500 you have to go pick up a 2nd job.
This proposal is probably a good idea for big sites like CNET, since that would kill all the smaller content providers and drive them out of business.
- deleted 17y ago[deleted]
- petercooper 17y agoYes. I've made anywhere between $4 and $50 CPM on a variety of programming related sites (alas the high end of that is well and truly dead for me now - but $10 CPM is reasonable). I'm talking CPM in terms of "per 1000 pageviews" rather than the more traditional "per 1000 ad impressions", however, since even if you can only get $2 CPM, if you can put 4 of those on a page, you're making $8 CPM at the pageview level.
- deleted 17y ago[deleted]
- ujjwalg 17y agoYou are looking from the perspective of the owner. Look from the perspective of the user. This will really filter out the best websites and no one will use over-the-top headings, bait and switch tactics to gain more impressions. There wont be much duplicates of the same stuff and things will be so much easier to find on the internet. Yes, it will make crappy site owners die, but they should anyway. It will also make targeted ads more popular.
- vaksel 17y agoSo how exactly will duplicates go away by getting rid of CPM? Killing CPM will actually make it worse. Right now I can put the CPM ad anywhere on the page, without interfering with the user. But if CPM dies, I'll need to make sure that people are clicking on the ads. That means they'll be much more prominent. And let's not forget, with the death of CPM, we'll get a ton more of those full page ads that hijack the screen. If you think the user experience will get better without CPM, you are mistaken. From the advertiser perspective, sure CPM isn't that good, compared to CPC/CPA...but it's a crapload better than traditional advertising. A $250,000 New York Times Ad will get your ad in front of 1.5 million people. That same $250,000 will get you 25 million page views(at $10 CPM)
- makeee 17y agoA $2 CPM would be great. These days I'm lucky if I can get a CPM of 12c. Although that's still much better then what I've been able to get with CPA ads.
- vaksel 17y agoyeah CPA really sucks. I have a car related site, and I have a bunch of CPA ads, and they aren't making any money whatsoever. Statistics:(40K users, 450K page views) Insurance(banner): 36 clicks, 0 sales Tires(multiple banners): 82 clicks, 0 sales Tires(click here type links tied into content): 213 clicks, 0 sales Leasing: 12 clicks, 0 sales
- makeee 17y agoYeah, I'm getting 600k monthly uniques and 3m page views and not even coming close to covering the cost of my dedicated server. I think big brand advertising is where it's at, but it's not easy to get.
- zepolen 17y agoWhat site?
- makeee 17y agohttp://imgfave.com http://imgfave.com
- brandnewlow 17y agoYour top photo is an all rights reserved Flickr photo. I take it this is a DMCA play? Not criticizing, just trying to understand the model.
- jwesley 17y agoMaybe your visitors just aren't interested in any of those offers. Or maybe you don't know how to convert your visitors into buyers. There are many people making a killing with CPA offers who know that statement is flat out wrong.
- auston 17y agoI think people are more or less ignoring IRRELEVANT ads.