Would be grateful for help with understanding CPM basics

Sagar Mehta · 05-24-2009, 03:18 PM

Hello everyone,

I've been looking into CPM as a revenue stream and have been researching a bit about it. I'm a little confused with a couple of things and would be grateful if the classy Warriors in here could help me get my head around this.

As I understand it, CPM pays me per thousand impressions of an ad from a particular advertiser. That is, if there are two advertisers say A (paying $5 per 1000) and B (paying $6 per 1000) and both their ads are running on my site.

If say they each get 500 impressions on my site (assuming I have 1000 Unique Visitors a day and they see only 1 page so that's 1000 X 1 = 1000 page impressions). So that means I'll be paid ($2.5 + $3) = $5.5.

Is my understanding correct?

Apart from that, I've identified some advertising networks like AdsDaq, MorningFall etc, each with their own minimum unique visitor and pageviews requirements. How is this information verified by them? I have Google Analytics setup on my all websites and I can show that as proof but none of their application forms ask for proof to begin with. Do they ask for it at a later stage?

Those are the two basic things I'm trying to understand at the moment. Any help is greatly appreciated as I'm a total noob with CPM

Regards,
Sagar

05-24-2009, 03:18 PM	#1
Sagar Mehta The Jobless Troll War Room Member Join Date: Feb 2007 Location: India Posts: 1,455 Thanks: 96 Thanked 94 Times in 42 Posts Social Networking	Would be grateful for help with understanding CPM basics Hello everyone, I've been looking into CPM as a revenue stream and have been researching a bit about it. I'm a little confused with a couple of things and would be grateful if the classy Warriors in here could help me get my head around this. As I understand it, CPM pays me per thousand impressions of an ad from a particular advertiser. That is, if there are two advertisers say A (paying $5 per 1000) and B (paying $6 per 1000) and both their ads are running on my site. If say they each get 500 impressions on my site (assuming I have 1000 Unique Visitors a day and they see only 1 page so that's 1000 X 1 = 1000 page impressions). So that means I'll be paid ($2.5 + $3) = $5.5. Is my understanding correct? Apart from that, I've identified some advertising networks like AdsDaq, MorningFall etc, each with their own minimum unique visitor and pageviews requirements. How is this information verified by them? I have Google Analytics setup on my all websites and I can show that as proof but none of their application forms ask for proof to begin with. Do they ask for it at a later stage? Those are the two basic things I'm trying to understand at the moment. Any help is greatly appreciated as I'm a total noob with CPM Regards, Sagar
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