CPM Advertising: From Managed to Network Placements

In digital marketing, CPM—or, cost-per-thousand impression—advertising is sold in two different ways:

  1. Ad packages bound to specific space on a website
  2. Ad packages that run on a CPM network

Both ways have advantages.

Ads Bound to a Specific Website: Managed Placements

For ad packages that are bound to a specific website, the administrator of a website creates a set CPM packages, indicating the number of ad impressions and cost for each ad slot. The advertiser then buys the placements he wants based on those administrator-defined conditions.

CPM 1

Managed placements are most effective for specialized goods or in cases when the ad space plays an important role for the advertiser—advertising camping equipment on a specific camping website, for example.

Because of the direct pricing and installation, it also helps when the owner of the ad placement system owns the website where the ads will be placed. It’s a smaller, hands-on way of doing business.

Ads on a CPM Network: Run Of Network

The second way, the CPM network, works better for large advertisers who want to reach a broader audience of consumers—say, to promote a new general household product or a mass-market beverage.

CPM 2

On Run of Network, advertisers are not bound to any specific websites at all, and administrators do not have to create a customized package for each website.

Instead, they advertise everywhere and get the maximum audience possible. It’s a bigger, more automated way to handle all the pricing and placements.

We Offer Both Managed and Network

Selling CPM ads in the Orbit Ad Server system used to be dominated by managed placements. We spent a lot of time making tools to help those customers work more profitably and efficiently.

Now, our tools have evolved to give customers the opportunity to choose a more convenient way to do business, by handling CPM advertising across a network as well as managed placements.

But with such big network opportunities in digital marketing, we think our customers need to consider how to reach more market segments and be able to offer advertisers a choice of how they want to advertise.

So tell us: is your business still mostly hands-on?
Or are you doing more network placements?
Regardless of size, which do you think yields the best ROI?

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