Decreasing CPM!!!!! why??

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  1. Jasmeetk profile image76
    Jasmeetkposted 8 years ago

    The CPM on my hubpages account is decreased to almost half! I am wondering about it? I want to know if anyone here knows about it. Please help me regarding it. I am totally clueless what to do...

    1. NateB11 profile image89
      NateB11posted 8 years agoin reply to this

      What relache said is true.

      Noticeably CPM tends to drop as traffic rises, generally. I think because high traffic often has a lot of readers who leave the page quickly. Logic tells me that if something is written that keeps readers engaged, because they like it or it just is what they're looking for, then it might increase CPM. Total speculation on my part, though.

      Edit: In other words, you need well-targeted keywords.

      1. lobobrandon profile image88
        lobobrandonposted 8 years agoin reply to this

        I've always noticed the high traffic and a subsequent decrease in CPM. Yes, higher traffic does have a lot of visitors that leave quickly, but don't you think it's the same number out of 1000? The percentage would roughly remain the same right?

        1. NateB11 profile image89
          NateB11posted 8 years agoin reply to this

          I think you're right, Brandon. That's logical. I've often speculated about decrease in CPM, but never put my finger on why it happens. Sometimes it doesn't, sometimes higher traffic also accompanies higher CPM, so it's hard to tell what causes it. Could be just advertisers' bids happen to get lower at certain times.

          1. lobobrandon profile image88
            lobobrandonposted 8 years agoin reply to this

            What I think is that for a particular niche the advertisers have a certain limit to spend each day. So when traffic increases in a niche the overall distribution varies accordingly. Hence, the lower CPM. Usually if a hub is getting increased traffic, it's logical to think that other hubs on similar topics are also getting more traffic - not the case always,  but that's the only thing that I can think of to explain the lower CPM at higher traffic.

            1. NateB11 profile image89
              NateB11posted 8 years agoin reply to this

              That makes sense. Basically more articles to distribute money to, so less to spend on each.

    2. peachpurple profile image82
      peachpurpleposted 8 years agoin reply to this

      i agree that most viewers are not staying long enough maybe a minute just to read the articles, hence our cpm drops.

  2. relache profile image74
    relacheposted 8 years ago

    We can't do a lot about CPM.  That's the cost per thousand views that your Hubs earn, and it's based on what advertisers are paying.

    When you get a lot of traffic that just sort of looks at your Hub but they don't stay long, your CPM can get lower.  Visitors who stay on a Hub a lot, who read the whole thing and interact with the page (that's called engagement) can result in a higher CPM.  But we can't really effect CPM directly.

    Some people try and find high CPM topics and then intentionally write about those, but I find that often results in a less than stellar Hub.

    1. Kylyssa profile image91
      Kylyssaposted 8 years agoin reply to this

      I have to strongly agree with this. A few geniuses may be able to write their very best on topics they aren't passionate about or even interested in, but I think most people aren't up to that challenge.

      I still have some hubs that were made to satisfy Squidoo challenges and quests that are quite clunky and mostly unsuccessful compared to hubs on topics I'm passionate about. I also had a client switch to producing material for a demographic I'm unable to relate to and I had to sever the relationship because I knew I couldn't produce what he needed.

    2. Jasmeetk profile image76
      Jasmeetkposted 8 years agoin reply to this

      Thanks for your suggestion... Recently I have uploaded some general articles. I think they are the reasons for the drop in my CPM

  3. Maffew James profile image95
    Maffew Jamesposted 8 years ago

    Advertising CPMs are an average.

    Say that you have two articles, generating 100 views, comprised as following:
    1. Article 1 produces 80 views
    2. Article 2 produces 20 views

    If Article 1 attracts higher-paying advertisers, and gives you a return of $6 per thousand views, whilst Article 2 only gives you a return of $1 per thousand views, Article 1 will generate $0.48 and Article 2 will generate $0.02, based on those views. Averaged out, this gives you $0.50 per 100 views, which is a CPM of $5. Notice how the article which attracts less money dilutes down the CPM by $1?

    Now imagine that your views increase like this:
    1. Article 1 produces 100 views
    2. Article 2 produces 120 views

    Instead of 100 views, you're now getting 220 views. However, the view increase of the less lucrative article leads to the dilution of the CPM. Article 1 produces $0.60. Article 2 produces $0.24. Total income for the two articles is $0.84, which is a definite increase above what was being earned previously with less views, but look at how the CPM is affected. (0.84 / 220) * 1000 gives you a CPM of $3.82. Ie, there are more views and earnings are clearly higher, but the CPM is significantly lower.

    The trap many people fall into is that they think that their views multiplied by the CPM is what they are paid. In reality, CPM is just a measure of your average earnings per 1000 views across the board. You're paid based on each individual impression, and CPM is a way of measuring the average value of one thousand of these impressions.

    As a more obvious example of the advertising value of individual views, look at Adsense. If you were to get 1 click at $0.48 from 50 views, for a total of $0.50 earnings (0.02 is from impressions, 0.48 from clicks), this is a click-through of 2%, and an RPM of $10. That 1 click, from one visitor, produces the bulk of the income, and RPM just tells you that if the conditions were exactly the same for 1000 views, rather than 50, you would be earning $10.

    Now let's say that you get 100 views but no clicks, and just earn $0.04 from the impressions. This would give you an RPM of $0.40. The average value of 1000 views under these conditions is less than the value of 1000 views in the previous scenario.

    Take it in a different direction and say that the conditions are the same as in the first scenario, except you get 2 clicks from the same amount of views. Click 1 at a value of $0.48 and click 2 at a value of $0.37. Impressions at $0.02. The total earnings are then $0.87 for 50 views, with a CTR of 4%, and an RPM of $17.40. One view gave you that extra click, but this one view drives the RPM up to a much higher average.

    As for what the income of each impression is based on, there is a wide variety of factors. Value of keywords (How much the advertisers will pay to target specific keywords), the amount of advertisers targeting the niche (Competition for a keyword drives up the cost), advertising budgets, amount of websites targeting the keywords (More sites showing ads for a keyword means the advertising is spread thinner), and how prestigious a site is (Advertisers will often pay more to target websites that are high quality and authoritative). Then you have factors like how many visitors click those ads, what they do after clicking, and how engaged they are in relation to active-view based advertisements.

    If you take a look at how CPM changes during December and over Christmas you'll likely notice that it goes up. This is because advertisers see it as an important time to advertise and sell products. There are more advertisers vying for the same keywords, they are willing to pay more, and they have longer campaigns and larger budgets.

    1. C.V.Rajan profile image58
      C.V.Rajanposted 8 years agoin reply to this

      Hi Maffew,

      You have posted a useful explanation that is worth converting to a Hub by you!

    2. NateB11 profile image89
      NateB11posted 8 years agoin reply to this

      Very informative. If I'm understanding correctly, this would be why you still get paid more for more traffic even though the cpm often goes down; because you still get paid per impressions, some articles still earn more than others. Of course, just the volume of traffic plays into getting more pay.

    3. colorfulone profile image77
      colorfuloneposted 8 years agoin reply to this

      Thank you for the explanation @Maffew James.

    4. Thelma Alberts profile image89
      Thelma Albertsposted 8 years agoin reply to this

      Now I´m getting knowledge on how to undertand that CPM. Thanks for the info Maffew James

    5. Writer Fox profile image35
      Writer Foxposted 8 years agoin reply to this

      That's quite an explanation!  I'll just add that it also depends on where your viewers are from.  Some AdWords advertisers will only advertise to viewers from the U.S., so if most of your views are from India, your CPM might be lower and vice versa. Also, if most of your visitors arrive from social media links, your CPM will be lower than if most of your visitors come from searches on search engines. Also, advertising  is more competitive and increases during various holidays.

      When you do your initial keyword research before writing a Hub, you should carefully consider what advertisers are willing to pay for those keywords.  Some keyword phrases are only worth a few cents per click and others can be worth $100 or more.  This is why your CPM will be different from everyone else's on HP because we are targeting different keywords.

      1. DrMark1961 profile image96
        DrMark1961posted 8 years agoin reply to this

        WF, if the incoming traffic from the social media site is from the US, why does the CPM differ from that of the search engine traffic?

        1. Writer Fox profile image35
          Writer Foxposted 8 years agoin reply to this
          1. DrMark1961 profile image96
            DrMark1961posted 8 years agoin reply to this

            Thanks for passing that along, that was really interesting.
            IE is more valuable than Firefox? I had no idea!

            1. Writer Fox profile image35
              Writer Foxposted 8 years agoin reply to this

              That post was from 17 months ago and Microsoft is now abandoning IE, so that part of the post is probably no longer relevant.

          2. NateB11 profile image89
            NateB11posted 8 years agoin reply to this

            That is very interesting, don't know how I missed it. Good info.


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