Viral Ad Network

CPM vs CPE

July 30th, 2010 by Dan Fitzpatrick

The advertising industry has generally relied on the CPM (cost per mille, or cost per thousand impressions) for many years, originally formulated for traditional media.

Here at VAN, we work on a CPE (cost per engagement) model – which we think is a far fairer and suitable model for use in the online space (because let’s face it, “new” media surely needs “new” methods?)

This article on Social Media Today explains the differences very simply, and offers an example which is useful for advertisers who are unfamiliar with the potential extra value a CPE model creates.

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