CPMs Are Falling Down, Falling Down, Falling Down

The ClickZ Network, Jan 23, 2001

Content sites.

The most wiggle room is among content properties. Just as the target audiences for content sites vary widely, so too can content sites' CPMs. What I can tell you is that the average CPM for most of these sites is not the $33.64 quoted in AdKnowledge's Q3 2000 "Online Advertising Report." It's more like half that. Sure, tech sites will be more expensive, but the CPMs simply follow the degree of targeting. I'm seeing $12 to $17 CPMs for a lot of content sites and even lower for the midtier selections.

A Good CPM

The ClickZ Network, Nov 3, 2000

I asked some friends of mine who run large online buying agencies for a figure. None were too eager to offer their own figures, but throwing the $11 out seemed to garner more nods than head shakes. Some thought it was $9; some thought it was $12. Amusingly, all were convinced that they were getting much lower rates than everyone else.
 

Targeted Media

We can target in many, many ways today. We can hit regions, demographics, behavioral profiles, and content adjacencies. All of these will add a premium to the price. And, most times, it's worth putting some intelligent targeting on a buy. While a straight 1,000 impressions on a site might cost $10 or $15, buying that same amount of media in a specific ZIP code and limiting it to people who have recently used their American Express card will cost you $75

Watered Down CPMs

The ClickZ Network, Dec 23, 1999

 Notice how individual CPMs aren't given for the targeted and untargeted inventory? That's because the targeted ad views are really expensive on a CPM basis. Rather than expose themselves to a potentially nasty negotiation over the price of the targeted ad views, some reps simply dilute the deal with whatever untargeted ad views they can spare. The result? A really low effective CPM for the package.

Don't be deceived by effective CPMs. Any deal you're evaluating should be broken out on a granular level, so that you can easily determine what's being paid for each placement. In the above example, you may find that you're paying over $100 for a thousand targeted ad views, while the Run of Site is costing you $3.