The math behind CPM

kyaizen

kyaizen

揸緊中指
May 26, 2007
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CPM cost could be $10 or higher, with RON traffic at around $5 (from my experience).

Say, CPM @ $10, with average banner CTR at 0.5%, it would mean that I will be paying $10 for 5 clicks, which means that the CPC is $2.

Making ROI on $2 CPC is challenging - it would mean a CR of 5% on a $40 payout.

It would seem that CPM is a real tough nut to crack just by looking at the math. Anyone with experience doing CPM which actually ROIs?
 


Why would you pay $10 CPM? You're not after branding.

Negotiate down. Tell them you're a direct response marketer etc etc
 
Sohan said:
If they won't budge just move on. Try giving them a call to and negoitate, it'll be way quicker.
Click to expand...

Nothing worse than dragging out emails over days trying to get them to understand there's no way in hell you are going to pay them the same CPM's as Coke. (Even though they have plenty of inventory available most likely, which is the aggravating part)
 
Yep, unless they are doing some targeting that you aren't mentioning you aren't even getting a reach around for paying $10 CPMs
 
Thanks. The ad rep I am talking to doesn't even seem to know the difference between direct response and "brand".
 
10 dollar cpm rate is ridiculous. the rate sheet is usually way too high to make profitable. if they wont budge, there's literally thousands of traffic sources out there. most media companies have a lot of inventory available you should be able to negotiate down.
 
Man sorry for pulling up a dead thread, but trying to do some buys and they're all around $15 cpm, WHAT PLANET ARE THEY ON!!!!
and I know they're not selling shit, fucking charity ads when i visit the site.
/rant
 
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