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I like CPM for several reasons.
- No click fraud
- Prices are set at an average click through rate. Thus if you can make a banner that gets an above average click through rate, you win. Whereas CPC, you get the clicks you pay for. However, you need a good banner and the right website with quality traffic to really win out.
- If CPM = banner ads and CPC = text ads, then you benefit more when someone doesn't click with CPM. Even if you get a 1% click through rate and tie the cost per click, the other 99 out of 100 people will have seen your logo, which means better brand recognition than CPC.
I like CPM because I run a web design company and know a thing or two about advertising. I know I can get a far above average click through rate and get more for my money. A few tips for banner ads:
- "Free" and "Click Here" are magic words. You'll get a higher click through rate if you have them in the text.
- Put it on the right site. Know your target demographic and make sure you advertise on the right site.
- KISS. Keep it simple silly. Don't use too many different types of fonts or clutter up the ad space. Sell your site quickly and without too much junk.
There are some other things that are dependent on the situation and the site, but that should give you a start in the right direction.
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