In the midst of this, with pressure driving CPMs down, Hearst Digital's CPMs are "essentially flat, " says Cordray.
Video ads are probably the best hope for decent CPMs on mobile, so that could be part of the motivation here.
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Publishers are making money as net CPMs (ad prices) are going up.
At FORBES, direct sales for our premium content (as opposed to programmatic buying) consistently yields much higher CPMs for desktop and frequently for mobile.
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Then you have to figure out the right ad units to score those high CPMs. Did I mention you need to get consumers to watch it?
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In addition to mobile, further monetization of the PC Newsfeed and the positive impact of the Facebook Exchange on right-hand-side column CPMs will help drive growth.
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Now, you need to maneuver all three pieces at once on three different platforms desktop, tablet and smartphones, each with different CPMs, clickthroughs and consumer behavior.
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Of course, as Business Insider notes, Patch could triple its April traffic and still not make money unless it finds a way to charge super-premium CPMs or discovers other revenue streams.
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The key driver is that mobile CPMs are only 15 percent of desktop CPMs. As traffic migrates, seven ads on mobile bring the same revenue as one on the desktop, because the lower CPMs coincide with lower click-through rates.
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While the CPMs on mobile are significantly higher (you have to stare at the ads which are quite large relative to the screen size), we struggle to believe Facebook can continue to ramp the ad load on mobile the way they did in Q4 2012.
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Engagement metrics can even identify a suitable medium and combinations of media platforms for brands, providing value above and beyond exposure, audience numbers and CPMs. By adopting a new engagement-powered ROI paradigm, marketers, media companies, and planners can not only guarantee that brands will better connect with consumers but can now predict returns on their investments.
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