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❓ASK What decides the CPM ?

Reznov

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I know that the economic system isn't the same in all the countries, but what makes the cpm in a country high and low in the other one ?

i also don't think that it's a matter of population because some north african countries have very low number of population and still have low CPM .
 

Emoney

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Buying power. People are using ads to promote their products and hoping that whoever see the ads to buy it. Western countries are spending like crazy online while most third world country barely spend at all.
 

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in the example that you gave, india has a very large population so the CPM is low there, that's a good thing for the advertisers, because their ads will reach more people for lower costs
 

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The value of the country's local currency also plays the part. Most businesses will rather advertise to rich countries like the US for example.

The value of the US Dollar is worth more than Indian Rupee or Indonesian Rupiah. So business can make a decent profit by charging in USD.

So therefore the USA CPM is higher because companies like advertising to US customers.
 

Emoney

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Not that many countries have utilized the internet like USA currently is. That's why may of the companies you're working for are based in USA and only cater to US people.
 

yoo.jong

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I think you use CPM when you have already had a proven ad copy that convert cold visitor to lead, and you want to drive down your cost of advertising. And you don’t pay for the click but pay for the view of that ad, it would further drive the cost down.
 

Reznov

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The value of the country's local currency also plays the part. Most businesses will rather advertise to rich countries like the US for example.

The value of the US Dollar is worth more than Indian Rupee or Indonesian Rupiah. So business can make a decent profit by charging in USD.

So therefore the USA CPM is higher because companies like advertising to US customers.
well you're right, but some products that are designed to a tier of countries don't have for sure the same quality as the products that are designed to other countries, you might get a cheaper product in your area, but the quality isn't the same, which means it's still the same for the company
 

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it's all about the countries and their use of internet to buy online, for first world countries most of people buy their products online so when an advertiser do an AD there they are sure that people will buy this why they give high CPM
 
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