

The Tale of the $340 CPM - whather
http://blog.gochime.com/the-tale-of-the-340-cpm-how-to-make-social-wo

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zaidf
_When we back these numbers out into CPM terms, our platform is doing a $340
CPM! To give some perspective: $20 is a very high CPM for Display and $100 is
a very high CPM for Email._

Nit pick but important enough to confuse me and may be others:

Saying you are doing $340 CPM suggests you are making an _ad publisher_ $340
CPM. What you really mean(I think) is that you are making the _advertiser_
$340 in revenue per 1,000 impressions(which btw is incredibly good!).

It gets more confusing when you state:

 _To give some perspective: $20 is a very high CPM for Display and $100 is a
very high CPM for Email._

You really just want to say that here's an advertiser that spends $x CPM to
advertise using our platform and in return he makes a profit/revenue of $y on
that $x spend.

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austin_e
Thanks zaidf. Sorry about the confusion. We actually mean that we (as the
platform) are making a $340 CPM. The advertiser in this case is making closer
to a $500 CPM.

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GiraffeNecktie
The "C" in CPM stands for "cost" and therefore can really only be used to talk
about expenses, so it totally doesn't make sense to says "we are making a $340
CPM".

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austin_e
thanks for pointing that out. acronyms aside, those are the numbers.

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sardonicbryan
One term my company uses (not sure if it's an industry standard) that captures
what you're describing is "yield," which is basically revenue/cost per user.
Ultimately, what "CPM" you are making your advertisers is hard to really
evaluate without knowing how much they are paying per impression or click.

That said, sounds like you guys are on the right track, now just have to
sustain this success and scale it!

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austin_e
thanks sardonicbryan. "yield" makes more sense. scale is the name of the game!

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pbreit
Pro tip: make sure there's a link to your home page from your blog.

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austin_e
good point. we're on posterous.

