I have asked this question many times and played around with various PPC & CPM programs that are available over the years and here is my conclusion. I found that my sites benefited far better from PPC advertising rather than that of CPM advertising for two reasons.
Firstly the payout was better, I found that the eCPM for my PPC adverts far outweighed the low CPM payments offered by the CPM companies. This is due to good placement of the PPC adverts which in turn generates a good CTR and thus a better eCPM.
The second reason was that many of the CPM adverts tend not to look as nice or professional at times compared to that of the PPC image ads. I am being very general here and many would disagree but overall I found that Google Adsense image adverts to be better and the image adverts offered by CPM companies. I found that some of the CPM advertisers that sneak into the CPM network can have really tacky banners that are able to scare away visitors! it is good to pre-approve some of these adverts if you can.
The attraction of CPM advertising is always luring with the bait being "no clicks necessary", but be careful when making the decision about whether or not to publish CPM adverts on your site as it all comes down to the payment you will get per 1,000 impressions. A good example of balance between PPC & CPM advertising can be found on http://www.citylinkpcs.com.au , see the image adverts? They are CPM & the text ones are PPC.
One thing to remember about the lure of CPM! That valuable ad space running your CPM adverts may very well be able to get 10 times the CPM (eCPM) amount if it were a PPC advert. As pay per click tends to pay higher. If this is the case you are losing big time!
As is always the case test, test, test. Every site is different and every publisher's requirements differ. Indeed it is a great idea to use both PPC & CPM advertising on your website provided that you are not risking your valuable advertising space on super low paying adverts that only benefit the provider and advertiser. Your visitors appreciate less ads and you as a site owner need to consider your visitors first and foremost. Your loyal visitors will appreciate your integrity by not bombarding them with too many adverts and will generally click through and visit your advertisers when not annoyed by them.
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