How do CPM ads work?

I am new to CPM model, Pls help me understand

[Sobriquet]

How do CPM model of advertising works?

As i understand from reading the basic posts, we need to pay for impressions ( showing the ads ) only. We get a fixed number of impressions for a fixed amount.

Now I am not clear, how, without a click, a user reached my site, on the basis of impression only?

Is it only by visual memory? or i am missing something?

How do we write a good CPM ad?

Please give your tips and suggestions on this.

[AlienPsychic51]

I haven't actually tried advertizing by paying for impressions instead of clicks, but I'm pretty sure that the ad is simply shown a certain number of times at a cost of an agreed amount.

If you pay for 1000 impressions you could get 1000 clicks or 0. If you get clicks then you don't pay more for the clicks. If you don't get clicks then you still pay for the impressions.

It might be good if you've got a good ad that gets lots of clicks. I've thought about trying it, but right now I'm trying to get the hang of the PPC.

[partnermine]

CPM works by picking a site or sites in which to advertise.

You offer a max CPM (cost per thousand impressions), and a daily budget.

Google spends your money up to your budget (with occasional overruns). The actual number of impressiins varies based on other bids on that site while your advert is running

If someone clicks they click. If they convert they convert.

A good ad is one that sets you apart on the target site and drives traffic to yours.

[Sobriquet]

if i make a CPM ad on some site, and someone clicks, does it mean that i dont have to pay for those clicks? or do i have to pay separately for those clicks?

Also, where exactly, in adwords control pane, do i go to make CPM ads? Couldnt find it ....

[Sobriquet]

Got it. Just made a CPM ad and have left if for next 4 days ..

Lets see if I get something.

[partnermine]

I have discovered one needs to exercise substantially better judgement when composing ads for site targeting than one does for keyword based ads.

See my post [webmasterworld.com...] for details of the hole I have dug myself in to and am trying to find a ladder to use to get back out.

One also needs to recognise that ads here seem slow to start, and then get served in batches rather than completely smoothly. Low daily budget may see your budget used up in one batch, and daily overruns seem common. The overall serving then slows on your billing date to get back towards your monthly budget.

[Tropical Island]

After reading this thread it's no wonder that AW has had to reduce the cost per thousand to such a low amount.

I don;t consider myself unknowledgeable in AdWords however this is one learning curve that just seems too complicated together with all the other changes.

[bullfrog]

Remember, an impression can occur even if the surfer does not see it, it could be at the bottom of the webpage out of sight.