I’m a regular reader of Darren Rowse’s website ProBlogger and I saw that he recommended a CPM advertising company called Chitika. Without going into too much detail, CPM stands for cost per thousand (M is the Roman Numeral for 1,000). This means that the CPM rate of an ad unit would be how much money you make for every 1,000 times the advertisement is displayed. If you get 2,000 pageviews every day and your CPM rate is $3, then you will make $6 a day, regardless if any of your visitors click an ad or not. The alternative to using CPM advertisements is CPC, which stands for cost per click. This means that if you have a Google AdSense unit (they are CPC ads) that has a CPC rate of $0.30, you will make $0.30 every time it is clicked. If you receive 1,000 pageviews a day, but only two people actually click your CPC ads, then you will only make $0.60 that day.
Why You Should Use CPC Ads
My favorite CPC advertising company is Google AdSense. I like AdSense because they are the largest advertising agency, which means they will have more people looking to publish ads with them. Google displays AdSense ads practically worldwide and they give you the option of either text-based units or multimedia units (which in my opinion bring in more income).
I think that you should use CPC ads (preferably Google AdSense) because they are great for people who visit your blog for the first time. A lot of new readers won’t be familiar with where you place your advertisements, so they will be more inclined to click one if they’re interested. On my blog, a lot of my AdSense units display ads related to cell phones, SEO companies, web design companies, blogging templates, or web browsers. This is great because if somebody made a Google search for “how to increase website seo” and clicked on one of my posts, my ads in the sidebar would be for SEO companies. That way, if the steps given in my article seem to complicated or the SEO company being advertised is within their price range, they will click the ad, which will make me money.
Why You Should Use CPM Ads
As of yesterday, I just started including Chitika advertisements on Omega Web. Chitika is a CPM advertising company that offers text-based units and mobile advertisements. The way that Chitika works is when someone visits your website from a search engine (which is called organic traffic), then they will display text ads relevant to their search terms.
CPM advertisements, such as Chitika ads, are great because the users don’t have to click the units for you to make money. All your readers have to do is create pageviews on your website and for every 1,000 views, you will make money. This is good if you have a lot of organic traffic because if somebody visits my post about my OS X Mountain Lion Kernel Panic by searching for “os x mountain lion kernel panic”, then Chitika will display advertisements based off of their search terms. If the reader clicks an ad, that’s great! If not, it doesn’t really matter because you’re still making money… That’s the beauty of CPM ads.
Why You Should Combine CPC and CPM
Because every website has a variety of readers, it would be smart to publish both CPC and CPM advertisements on your website. I know that Chitika advertisements only work in certain countries while AdSense units will display almost worldwide. If you have readers that have you bookmarked and return regularly, they will begin to ignore all of your ad units because they know where they are placed. In this case, you would still make money from your CPM ads because they are racking up pageviews.
Regardless of your blog’s traffic and success, CPC ads will help fill in the holes that CPM ads leave and vice versa.