CPM stands for “cost per 1000 impressions.” Advertisers running CPM ads set their desired price per 1000 ads served, select the specific sites on which to show their ads, and pay each time their ad appears.
Why is it good for you?
CPM ads in Google Adsense compete against pay-per-click (or CPC, cost per click) ads in the ad auction, so only the highest performing ads will be served to your pages. If an advertiser wants to specifically target your site, they will need to bid high enough to beat out the CPC ads that are already in the auction in order to show up on your page. Google pays you each time a CPM ad is shown on your page. But you won’t earn additional revenue for clicks on these ads.
How do CPM ads look like?
CPM ads can be either text or image ads, and are always site-targeted. CPM text ads will expand to take up the entire ad unit.
What I learnt from this?
I had earlier added a competitive ad filter to several ads which seemed less targeted and were less likely to get clicked, but as income dropped I realized that these were CPM ads and they made extra money even if they were not clicked. And they competed for price with ads which would have appeared in their place, so no point filtering them anyway. The Google Adsense ad auction and smart pricing are too complex for us to deal with, lets leave it to Google at best. For more information, visit Adsense support.
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