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Cost per mille or CPM refers to a pricing model whereby publishers get paid for every thousand impressions that an ad hosted on the publisher website receives.
CPM ad networks act as intermediaries in this process, charging advertisers and paying publishers based on the number of impressions.
Traditionally, the best CPM ad network businesses like Google AdSense almost had a monopoly on the market. However, longtime industry leaders are now experiencing serious competition coming from companies that compete through innovation and develop technology solutions full of targeting methods, real data, and smartphone ad functionality.
Let's take a look at the features of the current and emerging ad networks to evaluate and figure out where they can best help grow your business.
Table of contents:
• CPM and Other Types of Web Ads Pricing
• What Are the Benefits of CPM Ads?
• Major Factors Affecting CPM Rates
• 8 Best CPM Ad Networks for Publishers
What Is CPM?
CPM is an acronym for cost per mille, meaning the cost per thousand impressions. It refers to the price that advertisers pay to have an ad published and seen a thousand times on a website.
Due to its focus on impressions and not clicks, it is the most common method for pricing mobile ads and the most popular among mobile publishers.
How Does CPM Work?
The approach is based on impressions, a statistic that measures the amount of engagements with a specific ad. Advertisers pay a fixed charge to website owners for every thousand views of an ad. With CPM, if an ad is placed on the same page of a website twice, the advertiser will have to pay for two impressions, even though there is only one page view.
How to Calculate CPM
CPM is calculated as cost/total impressions x 1000:
You can also use Publift's CPM calculator to calculate cost per mille in 3 simple steps.
Calculating CPM lets advertisers quickly decide how many impressions they're going to receive for a specific sum of money or how much they're going to pay for a certain number of impressions.
A publisher on the other hand, can use CPM for setting their targets for selling ad space, which will differ based on whether the advertiser is reaching a small, niche audience or purchasing a broad amount of ad impressions.
CPM may be measured for each ad, each ad venue, and each campaign. It is seldom used in isolation, but rather in combination with other, more advanced analytics.
Why Use CPM?
CPM advertising packages can benefit publishers in a big way. Since users don't have to interact or click on the ad itself, this can help generate revenue more easily. In other words, publishers can get money by simply placing ads on their sites, even if users don’t click on them.
It's worth noting, however, that rates for the CPM model are often not as high as compared to other metrics such as cost per click (CPC), so in order to get higher profits, a website should have lots of traffic.
For mobile apps and game publishers, CPM can be effectively used to calculate the expected revenue made by placing an advertisement in their apps.
Different estimations, including the average number of served impressions and daily active users count can be combined with specific ad network metrics, such as CPM or eCPM to calculate how much profit they can make by placing ads in their apps and games.
In addition, CPM ad networks do not need specific market traffic or highly qualified traffic.
CPM and Other Types of Web Ads Pricing
Compared to other pricing models, CPM is much simpler, as no specific actions such as installs or clicks are expected from users.
For example, the cost-per-completed view is a metric that requires ads to be watched entirely in order to get the count. Cost per engagement is somewhat similar, as it only counts actions triggered by users.
More traditional advertising metrics include CPC (cost-per-click) and CPA (cost per acquisition). In CPC, marketers pay per click on the advertisement, while in CPA they require a visitor to buy something after they interact with the ad.
Such types of ads are tailored to promote a product to a particular niche audience.
On the other hand, if an advertisement is directed at increasing brand recognition or popularizing a particular message, CPM might seem like a smarter choice.
What Are the Benefits of CPM Ads?
1. Profitable for Publishers
CPM ads are particularly lucrative for publishers, as they receive revenue just for placing ads on their websites. Not only is this easier than getting users to click on or engage with an ad, but usually, these results depend more on advertising itself than a publisher.
However, as mentioned above, CPM rates are not as high as other metrics, so a website needs a considerable amount of traffic if it wants to make more ad revenue.
2. Brand Recognition for Advertisers
CPM ads are great for creating a strong following and increasing brand recognition.
If a customer has never heard of a certain company, it is highly doubtful that he or she would instantly purchase a product upon seeing an advertisement on the Internet. However, viewing the brand’s ad a few times, without engaging with it in any way can potentially set this customer moving down the path of eventual conversion.
It's also a smart idea to use CPM to develop a target audience persona and promote your business to them.
For instance, advertisers may be interested in finding out which among several age categories, such as young professionals or elders are best suited for their product.To find out, they may place ads on two websites targeting each group. Then, by measuring and comparing engagement on both sites, they can adjust their strategy accordingly and proceed with their marketing, without spending additional money on research.
Major Factors Affecting CPM Rates
Several variables can affect CPM rates. While some of these factors are beyond the control of publishers, others can be influenced to minimize their impact on CPM.
The following are examples of factors that are beyond the control of publishers:
- Seasonality: Consumer demand and advertising budgets can wax and wane throughout the year, based on major events, holidays, and changing seasons.
- Macroeconomics: Factors like recession, inflation, and economic booms can have a major impact on ad spend, consumer demand, and marketing budgets.
- Regulations: Privacy laws like the GDPR and other industry standards often force you to change how you track and serve ads, impacting CPM rates.
- Advertiser budgets: The money advertising companies allocate to digital ads is based on their internal strategies and business performance.
Now, let's take a closer look at some of the major factors affecting CPM rates that can be controlled or influenced in some ways by publishers:
1. Geographic Location
The GDP of a country and the relative purchasing power of consumers from specific locations can have a direct impact on CPM rates. Advertisers are more likely to bid for impressions that can reach these locations.
While you don’t have any control over the macroeconomic factors as a publisher, you do have control over your content.
Publishers can create content that has a better chance of attracting consumers from high-income regions. Advertisers, on the other hand, you can specifically target audiences so that their ads are only shown in specific countries.
2. Audience Demographics
Like geographic location, factors like age, gender, and income levels of the audience can also impact CPM rates. Advertisers are often more interested in big-spending demographics like young adults aged 18 to 34, working professionals and executives, and parents.
Although you don’t have full control over who can visit your pages, content curation can help ensure that more individuals from these desired cohorts are attracted to your platform.
3. Content Quality
If you have high-quality content that can attract and engage more visitors and keep them on your site for longer periods, advertisers are willing to pay higher CPM rates.
As the owner of a website, you have full control over the content. Investing more money and resources towards improving the quality of your content can prove beneficial in the long run.
4. Ad Format and Placements
Video ads and native ads tend to have higher CPM rates as these formats generate better user engagement. Ad placement is another important factor, as ads placement in areas with high user interaction can have better performance metrics.
For instance, banner ads and skyscraper ads tend to do better because they are placed either at the top of the page, or on the side, occupying a substantial portion of the viewport.
Similarly, ads placed in content-rich areas like the center of the page, above the fold, or pre-roll positions are more likely to engage your audience and command higher CPM rates from advertisers.
8 Best CPM Ad Networks for Publishers
1. Publift
3. Adcash
4. BuySellAds
6. Epsilon
7. Adbuffs
8. Media.net
1. Publift
Publift is a cutting-edge, premium ad network and programmatic advertising technology provider with over 15 years of experience in helping publishers understand and implement the latest in adtech. Named one of Australia's Fast Starters 2020 by The Australian Financial Review and Statista, they have partnered with over 250+ publishers and app developers worldwide.
Compared to other ad networks, Publift's clients typically see a 55% increase in ad revenue. In their own words, they're “obsessive about growing publishers' businesses."
As a Google Certified Publishing Partner, Publift is an excellent choice for publishers who want to monetize, grow their business, and serve quality ads with minimal impact on their UX.
2. Google AdSense
Google AdSense is one of the most popular ad networks out there.
With Google AdSense, publishers are free to use both CPM advertising and CPC (cost-per-click) campaigns. Publishers get 68% of the ad revenue, while Google retains 32%.
AdSense has a large advertisement pool that pays well, but its approval system is quite strict. AdSense helps publishers pick from 450 categories of ads and offers publishers a reach of 2 million advertisers worldwide.
The main drawback with AdSense are its somewhat arbitrary compliance requirements that often see accounts getting banned. As a result, publishers often gravitate towards experimenting with different ad networks after working with AdSense for a while.
3. Adcash
Adcash is a global online advertising platform that offers different ad formats ranging from text and banner ads to display and video ads.
They claim to fill inventories 100% of the time, allowing publishers to monetize web traffic with minimal effort.
The platform prides itself on offering dynamic CPM monetization and user experience, although can opt-in for the manual process too. Adcash also accepts smartphone advertising and has a smart network for personalized targeting.
There is no minimum traffic requirement to get approval and numerous payment systems are available.
4. BuySellAds
BuySellAds is a good option for beginners as it has low minimum traffic thresholds. The ad network helps publishers in setting direct deals with advertisers. It also enables them to monetize the traffic that is using ad blockers.
Pay demands for BuySellAds should be received twice a month and are reviewed in 2-3 days.
A minimum payment threshold of $20 may be transferred through PayPal. A minimum payment threshold of $50 and a maximum payment threshold of $500 must be available for cheques or wire transfers.
5. Propeller Ads
Propeller Ads is an excellent CPM ad network which is the market leader in popunder ads. It has created a strong presence for itself in the affiliate marketing space through the use of machine-learning algorithms to optimize ad delivery and improve publisher revenue
It's simple to try their service, which allows you to monetize your website or smartphone traffic in less than five minutes. You can get started right away by following a few simple steps to add and check your domain ownership.
PropellerAds has a Net30 payment policy and a minimum $5 payout threshold.
6. Epsilon
Epsilon, formerly known as Conversant Media, is one of the oldest ad networks in the industry. It's an online advertisement firm with a track record of more than 50 years in the advertising industry. It claims to get up to 3 times more in-market customers for the brands that advertise through it.
For publishers, Epsilon offers the service of its own private ad exchange, known as Core through which publishers can access premium demand partners and while streamlining all their site and app management. Epsilon offers cookieless solutions for advertising, thereby helping publishers transition smoothly into the future of publishing.
7. Adbuffs
Adbuffs is a data-driven CPM and CPC ad network specializing in eCommerce. It claims to deliver an average return on ad spend (ROAS) of 3.13 for advertisers. It also offers a suite of creative services composed of expert graphic designers and video creators that help brands create ads that convert.
For publishers, improved ad performance automatically translates into better returns.
8. Media.net
Media.net is one of the world's leading ad networks. With offices in Dubai, Los Angeles, Bangalore, Mumbai, New York, and Zurich, they run the world's second-largest contextual ads program, based on the Yahoo! Bing network.
Media.net's clients include Forbes, Yahoo, MSN, and Kiplinger, among others.
It offers advanced ad tech such as server-side enabled header bidding wherein advertisers bid in real time for ad space on publisher websites. This, in turn, drives up CPM rates offered to publishers.
Final Thoughts
This guide discussed all about CPM rates and listed 8 of the best high paying CPM ad networks for publishers. However, there is no one-size-fits-all in adtech, and publishers need to do their own research to figure out which ad network best suits their needs.
Publift helps digital publishers get the most out of the ads on their websites. It has been helping its clients realize an average 55% uplift in ad revenue since 2015 through the use of cutting-edge programmatic advertising technology paired with impartial and ethical guidance.
Contact us today to learn more about how Publift can help boost your ad revenue.
Best CPM Ad Networks—FAQs
What Is a CPM Network?
A CPM (Cost Per Mille) network is a platform that connects advertisers with website owners and other types of digital publishers. Advertisers get a chance to place their ads on the websites of various publishers, while publishers can monetize the ad space on their website or app. Every time an ad gets 1,000 impressions (views), the advertiser will pay a set fee to the publisher.
How Much Does an Advertiser Pay for Every 1,000 Impressions of Their Ad?
The fee paid by advertisers depends entirely on the rates set by the CPM network. The network sets the rates based on various factors like the audience quality, ad format, and historical performance data.
How Can I Improve My CPM Rates?
As a publisher, there are several things you can do to increase the CPM rates.
Consider optimizing your existing content quality to improve site traffic and user engagement rates. If possible, find ways to target specific high-value demographics, like homeowners or young adults. You can also improve CPM rates by utilizing premium ad formats like native ads and video ads. Finally, consider partnering with a high CPM ad network like Publift.
Are There Any Disadvantages to Using a High CPM Ad Network?
High CPM ad networks can look very attractive because of the promise of higher rates and better revenues. However, these networks often have stricter eligibility requirements, including minimum traffic thresholds and certain content quality standards. If you fail to maintain these standards, you may not be able to use such networks.
Can I Use a High CPM Ad Network as a Small Publisher?
Yes, even smaller publishers can use a high CPM ad network on one condition – you have to meet the network’s minimum eligibility requirements. You also have to invest in creating quality content that attracts valuable audiences. If you can keep up high engagement levels and traffic, you can grow your revenues considerably with a high CPM ad network.
What Could Have Caused a Sudden Drop in My CPM rates?
Several factors can cause a drop in the CPM rates of publishers.
Seasonality and fluctuations in demand are often the most likely source of decline. Improper ad placement, and an increase in the use of ad blockers by your target audience can also cause problems.
Recessions, high inflation levels, and increased competition in your niche are some other potential reasons for a drop in CPM rates. Check your site’s performance data to understand the root cause.
What's the Difference Between an Ad Network and an Ad Exchange?
While similar in nature, ad networks and ad exchanges play distinct roles in the advertising ecosystem.
An ad network is an aggregator that purchases and sells ad inventory from publishers to advertisers. It serves as an intermediary. On the other hand, an ad exchange is a digital marketplace where marketers and publishers can directly buy and sell ad inventory, often through real-time auctions.
Related Articles:
7 Best Mobile Ad Networks for Publishers
Top 13 Video Ad Networks for Publishers
Best Affiliate Networks For Publishers
Best CPC/PPC Ad Networks for Publishers
Best Ad Networks for Publishers
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