CPM vs Per User Revenue

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Ezoic is a data-driven company. Nearly every single decision we make is baked up with mountains of data. That’s why the debate of CPM vs per user revenue is dear to our heart.  It’s a classic fact vs fiction, David (Publishers) vs Goliath (Ad Companies) scenario.  However, rather than describe how CPM is outdated, abusive and unhelpful – we’ve already done that here – we will show you some REAL WORLD EXAMPLES and let you decide whether you would like a higher CPM or lower in each case.  Enjoy!

(click on “Show Results” below each scenario to see the total revenue generated for each option.)

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Scenario One

Let’s start with an easy one.  In this scenario, Option A shows less ads at a higher CPM and Option B shows more ads per page at a lower CPM.  Its purpose is to demonstrate the lack of correlation between CPM and overall revenue.

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Scenario Two

In this scenario, Option A has less aggressive placements with a lower cpm. Option B has more aggressive placements that deliver a higher cpm but fewer pages viewed per visitor since more people leave the site due to the aggressive ads.  This is a very common occurrence.

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Scenario Three

In this scenario, a slideshow type site with a high number of pages viewed per visitor has two options.  Option A displays a high click-through-rate native ad.  The native ad has a 5% click-through-rate and an increase in a page RPM of more than 30%!!!!  Of course, this also means that 5% of the visitors leave the site on each page.   Option B does NOT have the native ad and therefor has a lower CPM and less people leaving the site on each page.

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