CPM Formula
The CPM formula is = cost of advertising ($)/ (impressions generated / 1000). Using this formula, you can determine if those ad expenses are paying off. The following info will show you how this is done.
Step 1
The first step is to track the page views that you get on the website. You can do this using website logs, Google analytics and similar tools. You will need to monitor the page views for a thirty day period.
Remember that the software should track the page views, not the number of visitors you get on the site. Tip: to get good CPM rates, you will need plenty of page views, plus keywords attributed to your web page. Of course, the content quality is vital.
Step 2
The next step is to determine the number of impressions for the advertisement. In this case it is 100,000. You can use software to monitor this. By keeping track of the impressions you can monitor the expenses.
Step 3
Next you have to assess the total expenses of the impressions. Assume that it is $1,000.
Divide the number of impressions by 1,000. The result in this example would be 100. Next, divide the expenses of the campaign (in this case $1,000). The result is $1,000 / 100 = $10. The total cost is $10 for every impression.
There are also online CPM calculators that use the CPM formula. You simply have to enter the right figures and the calculation will be automatic.
CPM Ad Networks
You can make more money by getting an account with a CPM ad network. There are many of these networks available on the Internet. Before you can join the larger networks, keep in mind that they require a minimum amount of page views. The larger the network, the higher the page views per day/month is needed.
To increase page views, you must offer quality content. This will increase the page views you get. If you find a good network you can join, do it now even if you don’t intend to use it yet. It may get harder to join in the future. When you do make it to the large networks, put the ads all around your blog.
As your viewership builds up, learn how to use the CPM formula mentioned earlier to get your figures right. If you keep the content of the web page high, you will be able to earn a steady monthly income.
