Why I Do Not Like CPM Advertising On Blogs

I have had blog networks approach me like Federated Media, etc etc to handle my advertising. They just do CPM advertising though and they take a HUGE CHUNK like 40%+.

I guess I should give you some background on how we do our advertising here.

Basically we price it monthly at a flat rate and we let the market set the prices. We are currently sold out but when a slot opens it will be more then what the previous person paid or less depending. Fortunately (or unfortunately) for us the prices have only increased since we started doing advertising over a year ago. Also we have a very low turnover rate. I think the renewal is something like 90% so I guess advertisers are getting a great ROI. Allowing the market to set the prices IMO is the way to do it. This month (May) shoemoney.com will hit a all time high taking in almost $40,000 in advertising for one month. If the rate of growth exceeds it should do a half of a million dollars in gross revenue (not profit) this year. That is pretty cool.

Ok back on point of why I do not like CPM advertising networks. CPM is cost per 1,000 impressions. Lets say you get 20$ CPM. That means if your site gets 100,000 page views (not visitors) per day you would make 2,000$ per day per adspot.

Techcrunch for instance charges 15$ CPM on the low end. But if you look at there site the ads 99% of the time from Federated Media are COMPLETELY unrelated to the content or niche. This means a bad user experience for users and also a bad ROI for advertisers. While its a quick payday for Techcrunch in the long run I feel it will hurt them. Now I know Techcrunch does do direct flat fee ads (yay!) and much like on shoemoney.com you see the same ones there over and over and over.

So even though I could make probably 20-30% more with CPM advertising networks (from what I have been offered) I just feel in the long run it will cost me more money.

On a CPM basis you are always trying to game the social networks. The average front page Digg brings in at least $3,000 (don’t forget there is more then 1 CPM running) to these sites. but I really think you have to shift the focus of your site if you want to do CPM. Also you see sites quickly turn into page viewing whores implementing all kinds of things to get you to view more pages (hot or not, voting scripts, CLICK HERE TO READ MORE, etc etc).

With direct placement flat fee advertising I will guarantee that I will continue to do the exact same thing I have always done. I have zero incentive to game social networks or to buy 3rd world crappy non converting .00001 per visit traffic.

I know people really want to get into Federated Media but I can tell you … no I promise you that they are not worth it.

EDIT: I originally in included Blog Ads in with Federated Media for CPM networks Got my blog advertising mixed up but the points still stick.

About The Author

Comments 69

  1. sir jorge
  2. T
  3. Zac Johnson
  4. Best Videos
  5. Geiger
  6. Michael D
  7. mcQ
  8. Samir
  9. Doug aka nullvariable
  10. allen stern
  11. Mike1115
  12. ShoeMoney
  13. Kieran
  14. Start Blogging
  15. Marc
  16. Warenwirtschaft
  17. Website Reveiws
  18. Astrakhan
  19. failureblogger
  20. Darren
  21. Ferodynamics
  22. Hustle Strategy
  23. Hustle Strategy
  24. Pat
  25. team ray
  26. Mike1115
  27. CVOS man
  28. Mike1115
  29. Bob
  30. petnos
  31. Terry Tay
  32. Александр
  33. Александр
  34. Apoorv
  35. Melvin
  36. evpstud
  37. MoneyBites
  38. Rita
  39. Make Money Talks
  40. Mike1115
  41. Geiger
  42. pyrmont
  43. Best Videos
  44. Steven Finch
  45. ShoeMoney
  46. Goran Website
  47. Terry Tay
  48. Melvin
  49. Ranked Hard
  50. Web Marketeer
  51. Apoorv
  52. Simon
  53. Website Reveiws
  54. Funky South
  55. Apoorv
  56. Apoorv
  57. dotw
  58. PPC
  59. PPC
  60. PPC
  61. PPC
  62. PPC
  63. forumistan
  64. Jason Sieckmann
  65. Eminenz
  66. Manly
  67. cpm ads
  68. prabhat
Weapons Of Marketing
My Legal Issues & Downloadable Resources
ACT Affiliate Marketing Method & Download
FaceBook Ninja Marketing Presentation
Interviewing Darren Rowse Of Problogger
Sarah East From PopCrunch – *NSFW* – Most Awkward Interview Ever
I Spill it All To Andrew Warner
Interviewing Penn Jillette @ TC 50
How To Be Successful Making Money Online (keynote)
NamesCon Keynote Talk (Domain Name Focused)
Affiliate Summit 2012 Closing Keynote With Slides
FaceBook Ninja Marketing Presentation