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---- CPM method of advertising could have some gas left.


Robster - 9:42 pm on Nov 29, 2002 (gmt 0)


I had to look up and check the date on this post:

"there are still tons of sites that charges more then US$ 50.00/CPM for ROS and as much as US$ 120.00/CPM for target Categories."

I thought I was back in 1998 for a second.

I can't even comprehend how someone could justify 50 CPM let alone 120 CPM for a ROS campaign.

For example, BEST case scenerio that I can imagine for ROS banners:

200,000 Impressions
$120 CPM
3% CTR = 6,000 clicks
2% Conversion = 120 sales
cost per sale = $200

If I'm high or low on any of these numbers PLEASE let me know as I'm still learning! I know industry averages are all over the place, but IMHO I can't imagine any ROS campaign isn't going to get a CTR of higher than 2%. Am I wrong? I'm open to being wrong. It has happened before... once I think! ;)

So, if my numbers are close, then a company has to have a pretty high margin to cover their campaign.

From what I've read in here and other forums, it seems that CTR for ROS Banner ads is closer to .5% and conversion? Maybe around 1%? So, let's try with these numbers and $50 CPM

200,000 Impressions
$50 CPM
.5% CTR = 1,000 clicks
1% Conversion = 10 sales
cost per sale = $1,000

What do you think? Like I said, I'm sorta new at this, but this is what I believe the reality of CPM and CTR is these days.


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