Why is your CPM low?

Tips For Publishers: Why Is Your CPM So Low?

You have spent many days and nights working hard to build and grow your website. You have worked relentlessly to build a great audience with a large number of monthly organic traffic. So, when you’re finally starting to monetize your website, it’s quite natural to expect profit flowing in. But all you got is a very low CPM.

But why is that happening? And how can you possibly solve this problem?

In this article, we’re going to discuss about the top 5 reasons why your website is low on CPM and profit and how to fix it.

So, let’s begin…

Technical Issues

If you’re facing difficulty with getting your CPM high, then the first thing you should check is if you have any technical issues. And some of the main causes of your low CPM might be because of proxy traffic issues. In other words, many people who are browsing privately are landing on your website. Therefore, it’s almost impossible to track their IP addresses.

Normally, proxy traffic are people who use internet by connecting to a proxy server. So, exactly why this proxy traffic is causing your overall CPM to go down?

In simple words, there is no way to determine if a proxy traffic user is unique or not. And there is a high possibility that advertisers are paying higher prices to bring the same user over and over to their ads. And no advertiser would like that.

And to be honest, any website that has a high amount of organic traffic won’t be having a significant share of it as proxy traffic. So, these are most likely the people who aren’t really interested in what the advertiser is selling. As a result, it brings the CPM down.

Check Your Audience Characteristics

Checking your audience characteristics
Image Credit – Polus Media

Although this part closely relates to the statistics, understanding your audiences’ characteristics might help you find out a way to stop the falling CPM. And one way to do that is running separate ad campaigns for countries or GEOs with distinct characteristics. There are other ways to understand your audience too.

For example, if you run separate ads and keep testing, you will eventually figure out the audience that is responding to your ads the best. These audiences will definitely share some common characteristics like GEOs, OS, their device for surfing the web, etc.

However, if you don’t test things and understand the traits of your ideal audience, you might be wasting your ad budget on an audience segment that won’t convert that easily. And this will drastically lower your overall CPM.

So, make sure you understand how your audience behaves and set your ads according to it. This way, there will be fewer risks and you can stop your CPM from going down.

Check Your Ad Format And Website Type

A lot of new publishers make one very basic mistake that cost them both the audience and the profit. And the mistake is choosing the wrong ad formats for the websites. And when that happens, people are less likely to get interested in the ads. Let alone ever clicking on them purposefully.

So, exactly how would you choose a right ad format for your website?

  • If your website has some sort of tool like converters or is a streaming and downloading website, then it’ll be best to use push ads and pop ads.
  • For blog, news, or other information or entertainment website, native ads and push ads would be a great advertisement tool.

So, in short, if what your website have is basically media or written content and user don’t usually have to initiate a task, then native and push ad formats is the way to go.

However, there is an ad format that generally work very well for many different kinds of websites. And this is push notification ads. So, no matter what kind of website you have, if you want to generate good profit, push notification is the way to go.

Seasonability Can Affect Your CPM Too

Different CPM in different season.
Image Credit – Iconfinder

Sometimes, your CPM really depends on a certain season which varies from industry to industry. And that’s just how the market works. For example, many companies see a fall of sales during the summer season. And that’s quite natural as people are more focused on different activities than buying staff. On the other hand, sales come blasting in one the November hits. That’s why many business cut their advertisement budget during summer and start to invest heavily again around September.

So, if your sales are going down because of being out of season, don’t panic. You can always make up for it once the season hits.

Too Much Ads In One Page Might Dip Your CPM

One of the most common problems with new publishers is that they think more ads means more profit. They think that if they add more and more ads to one page, their profit will be higher too.

But that’s a big big mistake.

In reality, if you over-crowd your webpages with too much ads, that won’t help you gain more profit at all. In fact, that might just have the opposite effect.

The truth is, people are here in your website either to read an article, get more information or use a certain tool. And for the ads to work, you have to engage your audience. But there are absolutely no ways for that to happen if they have to face 5-6 pop up and many other notification right after they end up inside your website. And the situation is even worse for mobile users.

As a result, not only they aren’t gonna click on any of those ads, but they will also avoid coming to your website in the future. And this will definitely make your CPM go down.

So, instead of showing them too much ads right away, try to test different ad combinations. Figure out what works best for you and implement it. That’s the only way to counter this problem.