Display advertising is a way to attract the audience of a website, social media platform or other digital mediums to act in a specific way. These generally contain text-based, image or video ads that make the user click and go to the landing page and take action. Most of such campaigns are charged on the basis of CPC, so, everytime a user clicks on the ad, you earn. You can also use it to retarget campaigns, that is, serve ads to users who have already used the website. The idea is to retarget them, make them return to the website and take the same action. There is a variety of display ads like banner ads, interstitial ads, rich media ads, video ads and more. Given the diverse nature of display ads, you get the liberty to choose which form you want to advertise in. From your Google’s Ads Account, you can access millions of sites from Google Display Network. GDN has extensive reach which helps target the right audience by placing the correct ads. In this article, you would extensively talk about Display Ads and the potential revenue you can generate from it by virtue of CPMs.
Display Ad CPM Rates by Country 2020
Here, we would segment the CPM rates for display ads according to countries.
Display Ad CPM Rates in India 2020
You must remember that in order to reach its highest potential in terms of CPM, the display ad must be in a header bidding auction environment where the highest bidder will get the impression. If your site revolves around general purposes like news, entertainment and such, the CPM would be around 10 to 20 cents. However, the average CPM one can expect would be about 10 to 50 cents. Also,the CPM can increase according to niches.
Display Ad CPM Rates in the US
You must know that tier 1 countries like the USA get the highest CPMs there are. They get an average CPM of 2.80 USD for display ads and it increases according to kinds of ads and the niches. They also get a pretty good average CPC of 75 cents. It is important to remember that the high CPM and CPCs are indicative of the fact that they have high CTRs generally and they have huge ad spends too.
Display Ad CPM Rates in the UK
The UK is another tier 1 country and they also get pretty high CPMs. They get an average CPM of 1 to 2 USD for sites of general purposes like news, entertainment and such. Despite their market being very similar to that of the US, they get lower CPM rates because of lower CTRs and comparatively lesser ad spends.
Display Ad CPM Rates in Indonesia
The CPM rates are generally very low in countries and places around the Asian and the Pacific region. However, countries like India and Indonesia still managed to get the better CPMs of the lot. For Indonesian traffic, the Display ad CPM rates would be around 50 cents to 1 USD and can go higher according to niche.
Display Ad CPM Rates in Q1
For the first quarter, over 1.3 billion ad impressions and over 36 million clicks were analyzed. The average click through rate on Google Display Network was 2.72%. The average CPM rate was 3.80 USD and the average CPC was 1.46 USD.
Display Ad CPM Rates in Q2
Over 1.3 billion ad impressions and over 4.5 million clicks were analysed to receive the following data in the second quarter. The median CPM was 7.77 USD and the median CPC was a strong 64 cents. The CTR was almost 1.30%.
Display Ad CPM Rates in Q3
In the third quarter, the median CPM saw a major plunge and went upto 11 USD. The average CTR was 2.35%.
Display Ad CPM Rates in Q4
The fourth quarter generally has the highest CPMs, and the same is expected for this year.
How to Increase CPM Rates for Display Ads?
The behaviour of the user drives more revenue. As the ads on the websites appeal more, it is more likely that the user clicks on the ads and becomes repeated visitors. To increase the CPM rates for display ads, you must focus on- the ad placements. You need to position your ads in a manner that the visitors see them and engage with them. You can create your own search engine by using the Google custom search engine on your site, so you can trigger results by search queries and generate revenue. You can add additional features like link units combined with the Google ads and get an extra revenue. You can add sponsored or in content widgets in high visibility areas, like between two paragraphs to make it visible to banner blind visitors too. The way you position your ads and the determination of the kind of ad is important to increase both visibility and engagement. You can optimize it daily and observe how they perform and wing it for yourself.
Best Performing Niches for High CPM Display Ads
The niches influence CPM rates a lot. Depending on the niches, you get the keywords that you have to use in content and to monetize it better. You must actively try to find out the niches that work best and use them. You need to target the most relevant topics you can within your niche and would mostly produce the highest advertiser bids and compete with multiple bidders. However, niches on technology, e-commerce, insurance, fitness work excellently and drive good CPMs.
Wrap up
You must have gained an insight on how well display ads work and the CPMs you can get from it. Remember that they have their share of downfalls too. The prolific nature of display ads make them easily ignorable and hence, gets lower click through rates. Given the rise in ad-blocker technology, brands and media outlets try to circumvent it. However, they mostly work well and if you focus on doing it right, you will receive great results. Hope this helps.