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CPC better than CPM

lpok
December 14th, 2000, 09:51
Why does everyone likes pay-per-impression sponsors? If you do the math, CPC sponsors are much better. The average payout rate for CPM sponsors are about $1 and the average CPC sponsor pays about $.15 per click, so let's do the math.

Today, most CPM require you to have a CTR above a certain percent. Let's say you sign up with an average CPM sponsor that pays $1 per thousand impressions and they require a 0.5% CTR, that means every 1000 ads shown on your site will get you $1. Now, lets say you sign up with an average CPC sponsor who pays $0.15 per click, and display 1000 ads, and your CTR is 0.5% (The same CTR that you MUST achieve with the CPM sponsor anyways), that means you get 5 clicks which equals $0.75. The two sponsors payout is almost the same, the only differece is that the CPM sponsor will probably cancel your account if you had a bad month and did not get the require CTR. I don't know about you, but I will go with the CPC sponsor any day.

Dave|C
December 14th, 2000, 10:46
letme get this right:

In order to pay for my server which is say $300 a month I need 2000 click throughs?

I don't think so- CPM does nicely TYVM

DC

syanet
December 17th, 2000, 20:33
I plan on opening a free web host soon, and all the sites will be based on CPC rather than CPM for that reason. If you have targeted adds there's no limit to CPC revenue. CPM your most likely stuck at $1 or less.





  
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