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CPM? Could someone explain please?



2:03 pm on Jun 8, 2006 (gmt 0)

10+ Year Member


What does Cost Per Impression? I have very new hospitality site and I was curious to know what the above means? And, what is the best formula to charge a client for a fairly new site with little traffic; however. The domain of this site (my home page) may justify a higher advertising fee.

Thanks in advance.


2:09 pm on Jun 8, 2006 (gmt 0)


CPM stand for "Cost per Mill" which is really an outdated way of charging. It means a cost per 1,000 (banner) impressions on your website. It was populer 5 years ago but the problem was it never really worked as there was no correlation between impressions and buyers.

The most popular way to charge at the moment is "cost per click" - so you need to be able to track how many people "click" on each link for invoicing. If your site is niche, which it sounds it is, then probably better would be to charge a fixed monthly or annual fee. If you do monthly, do it with no lock in on either side, so the client doesn't feel threatened if the traffic is poor and you don't have to keep the price the same if your traffic rockets. It is also really simple - the client can budget and you can set up steady invoicing/charging.

More sophisticated "customers", however, whould only take your links on a results (sales) basis. Here you become an affiliate of the customer(Now called the Merchant). Look up "affiliate Programmes" to find out more about these. The best bit about these is that you don't have to go and get deals with advertisers - they simply tell you what deal they offer and it is usually all done through an online affiliate network.


2:22 pm on Jun 8, 2006 (gmt 0)

10+ Year Member

Thank you for the advice and the compliment in regards to the site. Right now, I'm working on a media kit to show different banner sizes that are suitable for this hospitality site. My clients will be able to download the PDF file to show ad cost and banner sizes.

If you looked at my homepage and went to my site, you'll see I have a link for listings. I'd like to charge $XX (I left out amount) amount per listing. I think the domain name will justify the current fee! What's your opinion? However, when (I hope) this site takes off I'll charge more.


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