This article was put together by my friends over at 5Q Communications. This is a must read if you’re advertising on the Web.
By 5Q Staff
If you’ve ever set up an advertising agreement with some website, you’ve likely seen or heard the term “CPM”. This common term essentially stands for “Cost Per Thousand” impressions and is still widely used as a model of advertising on many web sites.
Unfortunately, many organizations don’t understand the pitfalls with the CPM model and end up wasting thousands of precious ad dollars. The CPM model typically affords you very little control, little forecasting ability and is more of a gamble than a solid method of building a list, developing site traffic or increasing revenue.