As an Advertiser, there is a disavantage because i will still be

[asianguy]

paying Google for the CPM even if the surfer doesnt click it. Whereas, if I'm just using the CPC, I get to display my ad for free and if the surfer is interested and clicked my ad, i only get charged from that click.

Overall, I'd prefer CPC over CPM.

I just checked my stats and basing from what i saw, i dont see many advertisers have drawned into CPM. At least not for now, and this is my rationale.

[edited by: asianguy at 9:46 pm (utc) on April 27, 2005]

[ember]

As an advertiser, I agree completely, at least for all of our current websites. What good is $2 CPM if no one clicks? We're not so interested in branding as in getting targeted traffic, the cost of which we can control.

[europeforvisitors]

What's the big deal? Don't buy CPM ads if you don't want them. Leave them to the advertisers who do want them.

As Big John used to say at the end of the Big John and Sparky radio show, "You go to your church and I'll go to mine, and we'll all walk along together."

[mike schmitz]

It all will end up being the same anyway...

an advertiser will always end up doing math do determinee return on investment. if they make $50 selling a widget, they know how much they are willing to spend on advertising in order to make a profit. CPC or CPM makes no difference. Google is going to show the ad that makes them (and the publisher) the most money. its all the same. just more math.

[ember]

I don't think it is a big deal. There just seems to be a lot of concern that advertisers will abandon the CPC model and that the CPM model will pay less to publishers. I believe many advertisers will stick with the CPC model and that publishers will make as much as they do now. Google is going to run whatever makes the most money for them.

[Chris_H]

The CPM advertising model will appeal most to the high profile corporate businesses who wish to reinforce their brand with commercial awareness through exposure, and I can see this business model being unattractive to a vast amount of Adwords advertisers.

I'll bet that the CPM advertisers you'll see will be the ones you'd usually see on TV.... Coke, Pizza Hut, Motorola et al, where the success of the campaign is more to do with the amount of exposure in the marketplace, and not the amount of clickthroughs. Companies such as these pay hundreds of millions per year just to get their name out there in front of the audience. It will be no different to the CPM model.

[Marketing Guy]

A lot of advertisers are scared of the web and CPC offers quanifyable returns, whereas CPM doesn't (as much). Really down to the advertiser if they think the exposure is worth it.

By being able to select specific sites to advertise on, the exposure (at a low cost) using the CPM model could actually be a lot more profitable to advertisers, and a fairly attractive prospect.

In terms of publisher revenue, I hope it will encourage advertisers to go for quality sites, rather than some of the crap that's out there.

Makes an interesting prospect for publishers - marketing appeal could in the long term seriously impact earnings, where overnight "optimised" sites with little actual value to the user could see their revenue drop.

Could be an interesting set of data for Google to analyse as well - advertiser's choice could be a fairly influential indicator of quality and relevance in the long run! ;) Hello there Mr TrustRank! :)

[hfwd]

CPM does have an advantage: no click fraud like CPC.

[ember]

No click fraud, but there is such a thing as impression fraud.

[europeforvisitors]

I'll bet that the CPM advertisers you'll see will be the ones you'd usually see on TV.... Coke, Pizza Hut, Motorola et al, where the success of the campaign is more to do with the amount of exposure in the marketplace, and not the amount of clickthroughs.

I don't think AdSense CPM ads are aimed at the big mass-market advertisers, except for niche applications. Coke doesn't need AdSense to reach consumers; it can just as easily buy umpteen millions of ad impressions on the major portals and news/entertainment sites. On the other hand, there might be some value in site-targeted Coke ads if, for example, Coke wants to reach special-interest audiences--e.g., school PTAs that might be interested in fundraising with vending machines or collectors of Coke-branded clothing items.

A better example of a big company that might use AdSense would be 3M or GE, either of which has scores or hundreds of divisions, departments, projects, etc. that advertise in a plethora of trade and consumer publications. Scotch Magic Transparent Tape might not be a great candidate for AdSense "site-targeted" CPM ads, but 3M's sanding system for bowling alleys might be.