Cost Per Impression Ads
Cost Per Impression (CPM) Ads
So let’s say you’re selling direct banner ads and is also selling CPM advertising which is again an effective way to monetize your website.
What are CPM ads?
CPM (Cost Per Mille) stands for Cost Per 1,000 Impressions. CPM networks pays for every 1,000 impressions you generate. If a CPM ad network is paying you $1 CPM then it means that they’re paying you $1 for every 1,000 page views you generate.
CPM Network earnings totally depend upon your traffic quality but you can expect anywhere between $1 – $3 per 1,000 impressions. So, if you generate 100,000 page views a day then you can make $100 – $300 a day from CPM Networks. Again, you can earn $100 – $300 (or maybe even more) a day by selling banner ads directly to advertisers.
Now, you can split the traffic into three as you’re earning $300 each from 3 advertising networks. It means that you need 100,000/3=33,333 unique visitors a day (with a bounce rate of 100%) to make approximately $274/day.
Again, if you have an authority blog then your bounce rate will never be 100%. In that case you can expect an average page view of 1.5 per user. It means that 50% of your visitors exit from the landing page and others visit more than one page on your website.
All in all, you need approximately 20,000 visitors a day to generate 30,000+ page views and it can earn $274 a day which translates to $100,000 a year in advertising revenues.
Need a little more help reaching that $100,000/year goal? Add commissions from Affiliate Programs as well into the equation and you can hit that $100,000 goal with much less traffic.
In fact, in 2008 I was averaging $200+ a day from less than 200 daily unique visitors with affiliate marketing. It was possible because when it comes to affiliate marketing it’s all about traffic quality and not traffic quantity.