The Average Earnings of CPM Ads

How CPM Ads Work

If you have an idea for a website, such as a content site or a search engine, you would begin by obtaining a domain and placing relevant content on your site. Then, you would obtain an account with a publishing network, such as Adsense or Burst Media, which acts as a medium between publishers and advertisers. The publishing networks have a database of advertisers with CPM ads available for posting to your page. Once you post the CPM ad, every time a user views your page, you earn revenue for each of the CPM ads on that particular page. CPM ads should not be confused with CPC --- or cost per click --- ads, which only incur revenue when a user clicks on the advertisement. The advertiser sets his price by thousands of views. For example, for every 1,000 times your page is viewed, your CPM ads earn $2.

Publishing Networks

Adsense is Google's publishing network, the largest and the most well-known; but several other publishing networks provide CPM ads. Tribal Fusion, Brightroll and Adtegrity are a few examples of publishing networks that provide CPM ads. Each publishing network has different requirements, and provides varying levels of customer service to publishers. For example, Adtegrity has a 500,000 views per month requirement, and it is known for excellent customer service, according to a blog post by Darren Rowse entitled '12 CPM Alternatives to Adsense.' As a publisher, look for a publishing network that has all of the requirements and qualities that are appropriate for your website.

Average Earnings

The earnings generated from a CPM ad vary depending on the publisher and the advertiser. Hongkiat.com reports that as of 2011, the average CPM ad generates about $3 to $4 per 1000 impressions. The Calculators Live 'Online Advertising CPM Calculator' reports that as of 2007, the average CPM ad generates about $1 to $2 per 1,000 impressions. Given those estimates, it is safe to say the average CPM ad generates between $1 and $4 per 1,000 impressions.

Considerations

Many publishers assert that ad placement and color scheme play a role in the success of your website. You should place your CPM ads strategically so that they are tactful. Ads on the sides of the page or ads that take up little space at the top of the page are appropriately placed. In contrast, placing ads in the center of the page, or placing excessively large ads, may deter users from frequently visiting your site. Also, if the color scheme of your ads does not match the color scheme of your site, that may also deter users from continuing to visit your site.