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  1. #1
    Newbie mediahub's Avatar
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    November 22nd, 2013
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    Traffic Buying CPM vs CPC
    Hello all!

    I wanted to get the forums opinion on cpm vs cpc billing model and why one is superior to the other.

    Right now, we are selling our inventory on cpm but have been requested to support a cpc option.

    Looking for some Pro's / Con's and any experience anybody might be willing to share!

    Thanks in advance!

  2. #2
    OPM and Moderator Chuck Hamrick's Avatar
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    CPM is eyeballs, CPC is click throughs hence traffic. Display has taken a nose dive in the last year.

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  4. #3
    Newbie mediahub's Avatar
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    I just feel besides google, cpc is full of fraud and as a network, makes it infinitely harder to protect against fraud as publishers create scripts to generate more clicks.

    Seems the trend on display is retargeting!

  5. #4
    OPM and Moderator Chuck Hamrick's Avatar
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    Seems to me CPM can be full of fraud!

  6. #5
    Affiliate Manager bblythe's Avatar
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    mediahead, Chuck is right, you need to trust the publisher, not the model. As a merchant with an affiliate program I have a sincere love of CPA advertising, but I pay a premium price for premium customers. I like advertisers I work with to have skin in the game. Try to bonus them if they are a small advertiser based on performance, and if they are larger see if you can get a free trial. If they balk at these propositions and don't want to work with you to prove their worth, don't involve yourself with them, they may have something to hide.

    If they provide a quality service, they won't mind proving it to you for a couple of weeks free of charge. Maybe not this time of year, but as Q4 gets smaller and smaller in the rear view mirror, advertisers become hungrier and hungrier for business.

  7. #6
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    I heard test with CPC first and if you get high click rates, then switch to CPM if it cost less.

  8. #7
    Newbie RemoteProgrammer's Avatar
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    Quote Originally Posted by mediahub View Post
    Hello all!

    I wanted to get the forums opinion on cpm vs cpc billing model and why one is superior to the other.

    Right now, we are selling our inventory on cpm but have been requested to support a cpc option.

    Looking for some Pro's / Con's and any experience anybody might be willing to share!

    Thanks in advance!
    Greetings everybody! I am new in the forum. But not new in the web.

    Chuck is right. Recently I faced this issue with two different media. Here is the full story.

    I look after a high traffic news site of my customer with page views 70K to 100K daily as per webliser and 50K to 70 K as per Google. I just tried to sell unsold inventories. I was contacted by 2 different media people at different point of time. As we do not run any ad-server we normally charge on daily display basis. They told me they will go for CPM. And price per CPM is INR 10. I agreed. My day basis rate and CPM rate seemed same as per my calculation. I took the order and placed the ad.

    A few days later, they gave me access to their system and surprisingly I saw that the views were only 500 to 3000 per day (As per Google views of those pages is around 30 K). I immediately stopped the ad and cancelled the deal. Because even if go with GA report (they ignore possible invalid views), it should be 30K per day. I understood that their basic profit is from stealing.

    Later I tried Google DFP (double click for publishers) and tested with some of my own ad. My calc was right. So I got double sure that the media stat was not correct.

    But the problem with DFP is I cant (at least I did not see any option in DFP) give the access to advertisers the access to see the views / cost of their ads.

    To get rid of these issues I am going to develop a mini ad-server to check the CPM of the ads and also the affiliate banners such that I can measure the CPM and CPC.

    I think if the person controlling/running the stat is dishonest both CPM and CPC can be fraud. But risk with CPC is more, because cost of 1 click is costlier than cost of 1000 impression. But making a fraudulent click is easier than making an 1000 fraudulent impression ... just from tech point.

    Now it depends on your role. If you have the control on the stat and you want to be honest then you can go for either. In fact my target is the same.

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