Although click-through ratios for CPM-based advertising are low, click-through aren't everything. Even an unclicked (but viewed) ad can play an important role in promoting your company. A well-designed ad will catch a viewer's eye and may promote brand recognition, even if the viewer doesn't click or otherwise take action immediately. .
Targeted CPM-based advertising is additionally beginning to catch on, which may even the playing field for advertisers looking for an alternative to costlier CPC. If you can display your ad to your targeted audience, your click-through ratios will improve.For sites earning revenue for advertising impressions, the related abbreviation RPM (revenue per thousand impressions) may also be used.It is important to remember that when someone says something like, "our CPM is $5," this means that the cost per impression is $0.005. .
Effective cost per mille (eCPM) can be used to measure the effectiveness of the publisher's inventory being sold (by the publisher) with a CPA, CPC, or CPT basis. In other words, the eCPM tells the publisher whatever they would have received should they sold the advertising inventory on the CPM basis (instead of the CPA, CPC, or CPT basis). This information can be used to compare revenue across channels that may have widely varying traffic - by figuring the wages per thousand. This type of advertising system most closely resembles print and television advertising and is also usually used online for pricing banner ad campaigns. Generally, a set price is determined in which the advertiser pays the online publisher for 1000 impressions of a banner. This type of strategy is most advantageous for the publisher.
Many publishers of banner or text ad impressions will for provide you with the CPM for an advert package for that benefit in the advertiser. This provides a sensible way to compare advertising costs charged by different publishers primarily as the number of exposures provided in different plans tend to vary, with the total plan price, though the CPM compares costs having a consistent unit of measurement.If you want to read it more visit Cpm definition .