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Google Adsense is a program is run by Google. The program allows the publishers around the Google network of content sites to offer automatic text, video, images, advertisements to name a few. All of this is directly targetted towards the site content and the audience.
What Is CPM Rate?
CPM stands for “cost per mille,” which is a longstanding advertising term for cost per thousand. When you begin shopping around for online ad placements, you’ll often see the price denoted as “CPM.” If you see prices advertised as $1 CPM, you’ll pay $1 every time your ad is seen 1,000 times.
It’s important to denote the difference between cost per impressions and costs per click. If you see prices advertised as CPC, that means you will pay for every click your ad gets, or cost per click. Obviously, if you’re more interested in bringing traffic over than getting the word out about your brand, a CPC model will be better. However, there are instances where simply displaying your ad to a wide audience is a big benefit.
Typical CPM for Google
One of the most popular avenues for advertising is Google, which still maintains the biggest market share by far among search engines. On average in the first quarter of 2018, advertisers spent $2.80 CPM and $0.75 CPC. Across the entire Google Display Network – which includes Gmail, YouTube and other sites – the average click-through rate was 0.35 percent for that quarter.
Like many other advertisers, Google has you set a daily budget, which means you won’t have to worry about your cost per thousand impressions or the expense of your clicks going through the roof if you have a busy day. On average, small businesses spend $500 to $3,000 per month on CPC. If your company budgeted $3,000 at $0.75 CPC, you’d “go dark” after 4,000 clicks, meaning your ad would no longer display until your ad budget refreshed.
CPM for TV Ads
Television advertising can be pricey, but it makes sense for some businesses. A car dealership interested in establishing brand recognition in a very localized market may find a rotating ad on a morning news show could be the best way to go. The cost of an ad depends on the time of day you want it to air and whether you want a 30-second or 60-second spot.
As with other forms of advertising, TV ads are priced on a CPM basis. Audience size is determined by ratings. Costs range from $200 to $1,500 for a 30-second local spot, with that cost accelerating in big markets like Los Angeles and New York City. In L.A., typical CPM is $34.75, while in New York City, that drops to $27.16.
CPM for Radio Ads
You may get a better CPM rate by going with radio rather than television. With both TV and radio advertising, you’ll have a tougher time targeting your audience than with online advertising, but you can reach a wide pool of local residents quickly.
Radio advertising will range from $200 to $5,000 per week, varying based on the time of day and area where the ads will be played. With both TV and radio ads, you’ll also need to add the cost of producing your spots, which includes hiring talent and having the ad written. Many businesses work with an ad agency to take care of all of this for them.
CPM for Print Ads
Print advertising costs are based on the space your ad will take up in the publication. For newspapers, for instance, you’ll pay by the column inch. If you want a color ad, this will bump up the cost, and the location of the newspaper will also affect how much the print publication charges. You’ll pay significantly more if you have your ad appear in a nationally-distributed publication rather than a local paper with limited circulation.
To determine your CPM value, you’ll first need to find out how much the newspaper charges per column inch. Then you’ll find out how many potential customers your ad will reach to get the cost per 1,000 customers. The Bozeman Daily Chronicle has a circulation of just over 14,000 and charges $347 for a 1/8-page ad. Divide $347 by 14 and you’ll get a CPM of almost $25.
CPM for Display Ads
The more appealing a website’s ads are, the more likely it is that users will click ads and become repeat visitors. The same goes for when you need to improve the performance of your display ads.
There are really two things that you absolutely must have: the best ad placements, and an open mind. Position your ads where your visitors can see them, and know what type of ads can entice and engage them.
Best ways to improve CPMs for Display Ads
1. Standard Banner Ads
We provided you some suggestions in our article Top Banner Placements that Work! and mentioned that there are different strokes for different folks. In this case, you have to know the functionality of your site and decide what placement to use. Say you would like to use a leaderboard ad size of 728×90.
If a site’s articles don’t usually start until after the fold, I’d say to lower your leaderboard a bit, after the navigation bar, rather than have it flush with the top. In this case, users will see the ad for longer, rather than just ignoring it and proceeding to the article right away. Always consider placements that will draw more clicks, more impressions, and thus more revenue.
2. Google CSE (Custom Search Engine)
You can use the Google custom search engine on your site, which will allow you to create your own search engine. AdSense results, in this case, can be triggered by search queries, which generates revenue for the site owner. A custom search implementation also displays Google ads when a search doesn’t match a query.
3. Link Units
In trying to consistently offer new and additional features, Google created link units combined with the Google ads. This acts as a supplementary revenue for publishers. Again, placement plays a major role. We suggest inserting the link units into the content or right after the content. Higher visibility and user engagement is key, not to mention giving your users a sense of direction in finding the next article or a related topic.
Even if link units aren’t that enticing, that actually gives it the edge to attract readers since it does not look like typical text ads. As always, play around with it — experimenting with position and placement until you see increased revenue from existing traffic.
4. In-Context Ads / Sponsored Content Widgets
Inserting contextual ads and sponsored content widgets are another great source of revenue.
You can inject them into a high visibility area like in between two paragraphs, making them noticed even by banner-blind visitors. These two ads are better positioned near the bottom of the page, or right after an article or whatever the page content may be. Some visitors might not reach the bottom of the page, but just like link ads, they are attracting visitors who generally want further information about the topic or related information.
All of these are suggestions for improving your display ads’ CPMs. Positioning your ads and determining which types of ads to inject are vital to increasing ad visibility and engagement. Be open to experimenting with various techniques. Of course, daily ad optimization and keeping an eye on your ad performance is always your best bet.