A “good” CPM (cost per thousand impressions) for display ads varies based on factors such as target audience, ad format, and advertising industry. On average, a CPM for display ads ranges from $2 to $10. However, in highly competitive industries, CPMs can reach $50 or more.

The cost per thousand impressions (CPM) for display ads is determined by a number of factors, including the target audience for the ad, the format of the ad, and the advertising industry.

Target audience: The more specific and desirable the target audience, the higher the CPM will be. For example, targeting a high-income demographic in a specific location will likely have a higher CPM than a broad, nationwide audience.

Ad format: Video ads generally have a higher CPM compared to static image ads. Interactive ads, such as rich media ads, can also have higher CPMs.

Advertising industry: The competitiveness of the industry can drive up the CPM. For example, industries with high competition and limited inventory, such as technology and finance, can have CPMs that are significantly higher compared to less competitive industries.

On average, display ad CPMs range from $2 to $10. However, in highly competitive industries, CPMs can reach $50 or more. The actual CPM for a given ad campaign will depend on the specific circumstances and goals of the campaign.

What does CPM mean in digital advertising? 

Cost per thousand impressions (CPM) is a commonly used metric in the digital advertising industry to measure the cost of displaying an ad 1,000 times to a specific audience. CPM is used to calculate the cost of ad campaigns based on the number of impressions delivered, rather than the number of clicks or conversions generated. This allows advertisers to measure the reach and exposure of their ad campaigns, regardless of the actual performance or engagement.

CPM is calculated by dividing the total cost of an ad campaign by the number of impressions generated, and then multiplying by 1,000. For example, if an ad campaign costs $1,000 and generates 1 million impressions, the CPM would be $1 ($1,000 ÷ 1 million x 1,000). This means that the cost of displaying the ad 1,000 times is $1.

The cost of an ad campaign will depend on several factors, including the target audience, ad format, and advertising industry. For example, video ads tend to cost more than display ads due to their higher production costs and greater engagement potential. Additionally, the cost of ad campaigns can vary based on the methods and technology used to deliver the ads, such as through a demand-side platform (DSP), an advertising network, or directly through a publisher.

Advertisers typically use CPM to determine the cost-effectiveness of their ad campaigns and to compare the cost of different ad options. For example, if an advertiser is considering two ad campaigns, they can use CPM to compare the cost of displaying 1,000 impressions on each campaign and determine which campaign offers the best value.

When planning and budgeting for ad campaigns, advertisers should consider the CPM and the overall cost of the campaign, as well as other factors such as audience targeting, ad format, and ad placement. Advertisers should also be aware of the potential impact of ad fraud and viewability issues, which can affect the accuracy of CPM and the overall cost of ad campaigns.

In conclusion, CPM is a widely used metric in the digital advertising industry to measure the cost of displaying an ad 1,000 times to a specific audience. Advertisers use CPM to determine the cost-effectiveness of their ad campaigns and to compare the cost of different ad options. When planning and budgeting for ad campaigns, advertisers should consider the CPM and the overall cost of the campaign, as well as other factors such as audience targeting, ad format, and ad placement.

Are ads cheaper when bought through a DSP?

Buying ads through a demand-side platform (DSP) can potentially lead to lower costs, but it is not guaranteed. DSPs automate the ad buying process and allow for real-time bidding, which can result in more efficient use of ad spend and lower costs. However, the cost of ads purchased through a DSP can still be influenced by factors such as target audience, ad format, and advertising industry competition. Additionally, DSPs often charge a fee for their services, which can increase the overall cost of the ad campaign.

In summary, ads purchased through a DSP may be cheaper, but the cost will ultimately depend on the specific circumstances and goals of the ad campaign.

The standard fee for a demand-side platform (DSP) varies and can depend on several factors, including the specific DSP, the size of the ad campaign, and the services included.

Typically, DSPs charge a fee as a percentage of media spend, which can range from 5% to 20% of the total ad spend. Some DSPs also charge a flat fee or a combination of both a percentage and a flat fee.

It is important to note that DSPs can offer a range of services, and the fee structure can vary based on the services included. For example, some DSPs may charge additional fees for advanced targeting features, real-time bidding, or access to premium inventory.

It is recommended to carefully review the fee structure and services offered by each DSP to determine the best fit for a specific ad campaign.

What is a standard cpm for display ads through a direct buy?

The standard cost per thousand impressions (CPM) for display ads through a direct buy can vary based on several factors, including the target audience, ad format, and advertising industry. However, on average, a CPM for display ads through a direct buy can range from $5 to $30.

A direct buy refers to purchasing ad space directly from a publisher or website, rather than through an intermediary such as a demand-side platform (DSP) or an advertising network. Direct buys can offer more control and access to premium inventory, which can result in higher CPMs compared to programmatic or network buys.

It is important to note that the actual CPM for display ads through a direct buy will depend on the specific circumstances and goals of the ad campaign. Factors such as target audience, ad format, and advertising industry can all influence the CPM, and prices can vary significantly based on these factors.

Who do you reach out to to buy ad space directly on a website? 

To buy ad space directly on a website, you can reach out to the website’s advertising or sales team. This team is responsible for managing the website’s advertising inventory and can help you purchase ad space directly.

You can usually find the advertising or sales team’s contact information on the website’s “Advertise” or “Partners” page. Alternatively, you can search for the website’s advertising information on the internet or use a media database to find the relevant contact information.

Once you have the appropriate contact information, you can reach out to the advertising or sales team to discuss your ad campaign goals, target audience, and desired ad format. The team will provide information on available ad space, pricing, and any relevant terms and conditions.

It is recommended to negotiate and finalize the terms of the direct buy with the website’s advertising or sales team before placing the ad. This will help ensure that the ad campaign meets your goals and is executed effectively.

Is there an additional cpm fee for data use? 

Yes, it is possible for there to be an additional fee for data usage when purchasing display ads.

Data usage in the context of display ads refers to the collection and use of data to target the ads to specific audiences, such as demographics, interests, or behaviors. The use of data can increase the efficiency of ad campaigns and result in better ad performance, but it can also incur additional costs.

Data providers, such as data management platforms (DMPs), can charge a fee for access to their data, which can be incorporated into the overall cost of the ad campaign. This fee can be in the form of a percentage of media spend or a flat fee, and it can be reflected as an additional line item in the overall cost of the ad campaign.

It is important to consider the costs associated with data usage when planning and budgeting for display ad campaigns. It is recommended to carefully review the fee structure and services offered by each data provider to determine the best fit for a specific ad campaign.

What cpm should I pay for retargeting? 

The cost per thousand impressions (CPM) for retargeting can vary based on several factors, including the target audience, ad format, and advertising industry. However, on average, a CPM for retargeting can range from $5 to $20.

Retargeting refers to the practice of displaying ads to users who have already shown an interest in your product or service by visiting your website or engaging with your brand in some other way. As a result, retargeting can be a highly effective way to reach potential customers and drive conversions.

The CPM for retargeting will depend on the specific circumstances and goals of the ad campaign. Factors such as target audience, ad format, and advertising industry can all influence the CPM, and prices can vary significantly based on these factors. Additionally, the cost of retargeting will also depend on the methods and technology used to perform the retargeting, such as through a demand-side platform (DSP), an advertising network, or directly through a publisher.

It is recommended to carefully review and compare the cost and services of various retargeting options to determine the best fit for a specific ad campaign. This will help ensure that the ad campaign is executed effectively and meets your goals at the best possible cost.

What are the most common display ad sizes?

The most common display ad sizes are:

Leaderboard: 728×90 pixels

Banner: 468×60 pixels

Half-page: 300×600 pixels

Medium Rectangle: 300×250 pixels

Skyscraper: 160×600 pixels

These are widely accepted and standardized ad sizes, making them easy to use across a variety of platforms and devices. Other display ad sizes do exist, but these five sizes are the most commonly used and supported by most ad networks, publishers, and platforms.

When choosing a display ad size, it is important to consider the target audience, placement, and context of the ad. For example, larger ad sizes may be more appropriate for desktop devices, while smaller ad sizes may be more appropriate for mobile devices. It is also important to consider the user experience and ensure that the ad does not disrupt or negatively impact the user’s experience on the website or platform.