If we look at the current programmatic environment, CPM ad network systems are growing exponentially. In the past, ad network companies like Google AdSense almost controlled the market. However, long-standing market leaders are now facing fierce competition from businesses that innovate and create technological solutions packed with targeted strategies, real data, and smartphone ad capabilities. Are ad networks profitable?
When they first began, real-time bidding strategies for media companies were applied by publisher ad networks. Today, smaller companies that work with advertisers as well as larger ones have developed to provide advertisers with a CPM business model that is simple to use.
What Advantages Do CPM Advertisements Offer?
1. Very Successful (for Publishers)
Since publishers make money solely from putting advertising on their websites, CPM may be especially profitable for them. This is simpler than encouraging users to interact with an advertisement, and frequently yields better results than a publisher.
There is a downside, though, as was already noted, and it must be taken into account. In order for a website to generate more ad revenue due to CPM rates, which are not as high as other measures, it must have a sizable volume of visitors.
2. Recognizing a brand (for Advertisers)
After discussing the alleged benefits of CPM programs for publishers, some may draw the conclusion that it is not necessary for an ad company to set up a CPM-based program because impressions are not as important as views, installations, and purchases. We may examine the CPM program from the perspective of the advertising companies to see if this is true.
The click-through rate, or CTR as it is commonly known, is one of the many indications that may be used to determine a campaign’s efficacy. It’s estimated as a proportion of the people that clicked on your advertisement after seeing it.