AdSense CPM

CPM is a term used in web-based advertising, and is a measure of your average earnings, per thousand clicks. Thus, the AdSense CPM scale refers to how much advertisers pay based on market perception. This is the main difference of the CPM as against the CPC (cost-per-click), a program wherein advertisers pay after previously agreed conditions have been met (example: clicking an ad, registering for the product, product being sold).

Simply put, AdSense CPM is a visual-focused ad while CPC is a content-focused ad. To further expound on this, a typical CPM travel ad would be a picture about a given country's many tourist spots. A CPC travel ad, on the other hand, will have minimal display of images and it will indicate in detail the tours available in a given country or perhaps, describe each tourist spot that is being marketed.

In AdSense, CPM advertisements are allowed to have content ads as well. This simply means that an image-based advertisement can also carry content data, enabling the ad to reach out to a larger target audience.

Another relevant feature of AdSense CPM is that it remains a "website-focused" advertisement. This means that a given website will only post a particular CPM advertisement if it feels that the text in the advertisement will be useful to the company's overall marketing plan.

Advertisers usually ask which of the two kinds of advertisement is more effective. Basically, it would really boil down on the preference of the consumer to whom the ads are being presented. Advertising experts, however, suggest that it is a lot smarter to make use of AdSense CPM since it guarantees maximum exposure for the product it promotes.