Are you a digital publisher looking to maximize your revenue through effective ad monetization? If so, you've probably heard of the term "CPM" – Cost Per Mile, which represents the amount you earn for every thousand ad impressions on your website. CPM advertising is a cornerstone of digital advertising revenue, and understanding how to increase CPM can significantly boost your earnings. As of March 2023, the technology industry has the highest CPM in Facebook Ads at $9.98. While this number varies across different sectors, it is evident that when starting out as a digital publisher, this revenue model can be a game-changer for publishers with time.
In this blog, we'll explore different monetization models for publishers and provide detailed explanations of each model. Furthermore, we'll delve into actionable strategies for digital publishers to increase their CPM effectively.
Monetization Models under CPM
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eCPM- This stands for effective CPM and is calculated using the following formula
(Total Earnings/Number of Impressions) *1000
The total earnings not only include earnings from CPM but from other revenue models as well such as CPC, CPL etc.
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qCPM- This metric is useful for the advertiser in measuring the number of quality impressions that a publisher’s campaign managed to generate. For this purpose, the total earnings are replaced by the budget of the campaign. The formula for calculating this is as follows
(Budget of the Campaign/Quality of Impressions) * 1000 - vCPM- Following Google’s 2015 announcement of paying publishers only for viewable impressions, this model came into the picture. Using this, ad monetization happens only when an ad is legitimately seen by a user and not when an ad is simply rendered without being viewed.
Other notable revenue models for publishers
- Cost Per Click (CPC): Cost Per Click, involves earning money when users click on the displayed ads. Publishers receive a commission for each click generated through their website.
- Cost Per Install (CPI): Cost Per Install, is common in mobile app advertising. Publishers earn a commission when users click on an ad and install the advertised app.
- Cost Per Action (CPA): Cost Per Action, involves earning money when users not only click on an ad but also take a specific action, such as making a purchase or signing up for a newsletter.
How can publishers increase CPM?
Now that you're familiar with the various monetization models, let's focus on how you, as a digital publisher, can increase CPM effectively. Here are some actionable strategies to boost your ad revenue.
- Optimize ad placement and size- As a publisher, make sure you constantly experiment with different ad placements to find what works best for your audience. Above-the-fold placements, interstitials, and in-content ads are common choices. Apart from this, choose ad sizes that are popular among advertisers, such as 300x250, 728x90, and 336x280. These sizes often receive higher bids, increasing your CPM.
- Implement header bidding- Header bidding allows multiple advertisers to bid in real time for your ad inventory, resulting in higher CPMs. It maximizes competition and revenue potential. However, this measure requires a high amount of patience since a new publisher may not see quick results from implementing header bidding as their inventory is novel and prone to scepticism.
- Increase ad viewability- Ad viewability remains an important parameter when choosing the right inventory along with brand reputation, ROI, etc. Advertisers think twice before choosing publisher inventories with lower ad viewability.
To ensure that this is countered, check your page loading time and improvise on the same. While doing so, understand the right placement for your ads and optimize your inventories for a mobile-first web environment. This is necessary as most of the users surf these days using phones and thus, the ads must load appropriately on phones to garner better attention.
- Collaborate with premium ad networks-Partner with premium ad networks and exchanges that have access to high-quality advertisers. They can offer better CPM rates compared to generic networks.
- Ad blocker mitigation- Implement strategies to counter ad blockers, such as asking users to disable them or offering ad-light experiences to premium subscribers. This can help in improving your revenue as ad blockers can significantly impact CPM. Moreover, it helps you provide a better user experience.
Remember that ad monetization is an ongoing process that requires continuous monitoring, testing, and adaptation. Staying informed about industry trends and technologies to remain competitive is the way forward to ensure your CPM reaches its peak potential.
