Forums Writing Chapter 10 CPM: a little more explanation, please?

CPM: a little more explanation, please?

I’m still a bit fuzzy on the CPM, and exactly how it’s calculated to charge advertisers.

If the CPM is $2, what does this mean? It’s the cost for 1,000 impressions, I understand, but what exactly is an impression, and how is it recorded? Is it the number of people who visit the page on which the ad appears?

Thanks!

View Profile 2012-05-17 03:13:09 PDT

Impression, sometimes called a view or an ad view, is a term that refers to the point in which an ad is viewed once by a visitor, or displayed once on a web page.

The number of impressions of a particular advertisement is determined by the number of times the particular page is located and loaded. If it is randomly generated, then it is the number of times the particular ad appears from the random generator. An impression is an estimate of the number of people a particular advertisement is reaching, and may be counted in different ways depending upon the way the ad is situated on the page, as well as the number of times the web page where the ad appears is shown.

Ad reports list the number of total times of impression of the ad, which basically counts the number of times that the ad was served by the search engine when the keywords that the ad is connected to were searched for.

As far as how to track ads, I don’t have any experience with this directly but I would suggest looking at forums such as this – http://groups.google.com/group/analytics-help-tracking/browse_thread/thread/87bc98cecb1bea4b

And researching ad tracking services such as this – https://adspeed.com/Knowledges/799/Ad_Serving/Ad_Tracking.html

I hope this helps, good luck and let us know if you come across any useful info that you can share in this thread.

~ Josh

View Profile 2012-05-17 21:17:51 PDT

OK, I think I understand then. So if an ad’s CPM is $2, and the page with the ad gets 20,000 page views, then the advertiser pays $40. Right?

View Profile 2012-05-18 01:38:26 PDT