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What is Cost Per Mile

Posted On : Jan-17-2012 | seen (517) times | Article Word Count : 529 |

Cost per mile (CPM) is used to measure the costs for advertising online. A publisher is the person who shows your advertisement on their website. In this method any deed that is done on the publishers’ website is not taken into account with CPM.
Cost per mile (CPM) is used to measure the costs for advertising online. A publisher is the person who shows your advertisement on their website. In this method any deed that is done on the publishers’ website is not taken into account with CPM. This form of advertising means that for any entrepreneur that uses it will have to incur costs. The costs are measured for every thousand times that your advertisement is shown by the publisher. Going into detail of the CPM formula we see that the C is for cost, P is per and M is for thousand because in the roman number system M will mean a thousand.

CPM is a method that accrues many advantages to the parties involved. The publisher is paid by the advertisers for the service of advertising. The profits the publisher makes are more if his websites is frequently visited. The advertiser will pay the publisher if a visitor visits the page where the advertisement is placed even if the visitor does not click on it. This is because the action of the user is considered as a view.

The advertisers also benefit from using CPM as a form of advertising. The advertiser owner will receive profits if the visitor click on the advertisement shown on the publishers’ website and then purchases something from their site. The design of the advertisers’ websites should be captivating to the visitors so that they can become customers. If a visitor is not impressed with the advertisers’ website, then the advertisers will not make any sales. The advertisers should be careful how they present information in their website. The content should be well organized, simple to understand and direct to the point. The design of their website should be user friendly and easy to navigate. If an advertiser fails to make these considerations, then they will make losses and there will be no point in using CPM. An advertiser should do an analysis of the publishers before they decide to advertise with them to ensure that they use publishers whose websites receive frequent hits.

CPM is not only used in the internet but it is also used in a variety of other media like television and radio stations. The owners of the advert will pay the publisher in regard to how many times their advert is played on the television or radio. Whichever media an entrepreneur decides to use, the message in the advert should be well crafted so as to attract potential customers. A message that is effective will lead to increased number of customers but one that is incorrect or not socially acceptable will result in loss of even the existing clients. An advertiser can hire the services of agencies whose work is to create adverts for companies if they are unable to do so themselves. When using radio or television as a media for CPM, other factors come into play. The time when the advert is played will influence how much the advert owner will pay the publisher. This is because at certain crucial times, like during news updates there are many viewers.

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Keywords : Cost Per Mile, CPM, what is CPM,

Category : Business : Advertising

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