5 things CPM and Nessie might have in Common

Thanks to our users asking about CPM rates and their share in the revenue we decided to break the myth bubble around these terms and try to explain why there's nothing supernatural about these.

posted by Fliiby • 2 years ago

We’ve been asked a lot about CPM by our users and publishers, as if it as some sort of mysterious creature who many claimed to see, but there was no evidence about it. It felt almost like that cliche "once upon a time" bedtime story when trying to explain the CPM and how it works. We decided to see if there is anything mysterious about it, so we went with another mysterious thing we all know about - Nessie the Loch Ness monster. Here are the reasons why we find the Nessie myth and CPM similar:

We all know about it

There’s basically no way you’ve been spared of the Loch Ness monster legend. From Toyota’s commercial to The Water Horse and The Simpsons - she’s been around the pop culture ever since the first spotting in 1933. In case you somehow missed it - Nessie is a nickname for a cryptid - a monster believed to inhabit the Loch Ness in Scotland. Since the first sighting, until the very present day, there are numerous questions and speculations whether she does or does not exist.

If you’re into monetization, as we here at Fliiby are, then you Googled for CPM more than once. You read a dozen articles, explanations from the YouTubers, bloggers, influencers, even from the good folks from the AdSense, and came to the conclusion- it depends on many things.

Just like the legend about Nessie, there have been many stories about CPM, what it really is, for whom does it really matter, etc. 

No one really ever measured it precisely

The first photo of Nessie was back in 1934. depicting something that resembles a long-necked creature. Since then, the descriptions were various. Nessie is usually described as a creature resembling a plesiosaur, with its biggest hump about 50ft long (comparing it to the Urquhart Castle in 1955. photo of the creature). Local residents created old wives tales about a beast living in the loch, that transforms into a horse when hungry, and then waits for a naive traveller to jump on its back, so it could gallop into the depths of the lake to feed on him.

As far as CPM is concerned, it is determined solely by the advertisers. This is why monetizing platforms, such as Youtube and Fliiby are paid by AdSense, so these platforms don't have any influence on how CPM is calculated. 
CPM is a hell of an algorithm which can't be tricked, and it has various factors affecting how the publishers and content creators will be paid according to CPM formula.

We still don't know if it is real or just an old wives tale.

Though thousands of sightings were reported, it’s still questionable if Nessie is real. It is the most famous creature with the least evidence of existence. There have been many explanations what it might be instead - from sturgeons and surfacing trees to eels and seismic activity. However, none of these have been proven but speculated supporting even the slightest chance of Nessie’s existence.

Though CPM does exist, the truth is it shouldn’t concern you, unless you’re an advertiser. What publishers should watch for, instead, is RPM or revenue per thousand (mile), or the average amount of money they will receive for every thousand views their monetized content generates.We find this to be the fairest revenue sharing model. 

People still choose to believe it’s big and frightening

Giant eels? Elephants? Earthquakes and gas? These are all probable explanations for the reported sightings of Nessie. However, people still choose to believe that Nessie exists and that she's hiding in the underwater caves. Canadian band Real McKenzie’s released the song called  Nessie in 2001, calling for the cease of the search for Nessie and protesting her capture. Scottish athletes who were competing in the triathlon in 2005. were insured to £1 million in the case of Loch Ness monster bites. Even Google enabled the Street View for you to search for Nessie from your couch.

And where does the (e)CPM hide?

If you ask Google about this - they'll say that your earnings will depend on many factors, and Google owns AdSense, which monetizes content platforms. For example,  eCPM can vary depending on the niche (gaming, music videos, tutorials, etc), your geographical location,  seasonality of ads - advertisers might run more ads during the holiday seasons, but also run fewer ads during a period that doesn’t match their target audience’s interest.

Also, the determination of this stat is dependant on the type of ad served - whether an action on the ad is required (a click) or just displaying it does the job. For the record - this too depends on the advertisers. And remember kids, not all your views are monetized - that's why eCPM stands just for the monetized views.

It’s not exposed for a good reason.

It's been more than 80 years since Nessie was first sighted, but her existence still hasn't been proved. In 1959. Italian journalist claimed he invented Nessie when he exaggerated the story about two Scottish fishermen and a giant fish they caught. One of the reasons why Nessie myth hasn't ever really been busted might be the fact that around one million people visit the Loch every year, and generate about £25 million income. It is believed that 80% of visitors are there for the monster.

CPM is also just described and speculated about, instead of really having it's value defined. It could be anything from $1 to $10. This is why publishers calculate their own eCPMs. In order to calculate this stat, you will have to do a little bit of math with your earned revenue over the period of time and the number of views your content got.

Let’s say your file was viewed 10 000 times for the past month, and you earned 50$ from the ads.

To calculate the eCPM (anticipated rate) - divide your earnings by monetized views, and then multiply by 1000.

                                                                                         50÷10 000 x 1000 = 5$

This is the estimated amount of money you will receive for every 1000 views.

Remember that usually, not every view is monetized. Advertisers determine how many views will be monetized depending on, as we mentioned, the seasonality of the ads, your geographical location, etc.

Thanks to this, your eCPM may sometimes seem low. 

Why Fliiby chose CPM?

We find this to be the fairest revenue sharing model. Fliiby displays ads near your content (upper right corner), and under the content in a form of the advertising banner. Also, we may display video ads over your content as well. Of course, we could opt for any of the other models like CPC, but CPM is the best model suitable for publishers, not advertisers and we work on that to have our revenue share better than the one offered by other platforms.
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Posted by Fliiby • 2 years ago