CPM Rates have been the primary metric for understanding revenue models for online advertising. CPM or cost per mile is calculated as the revenue which advertisers pay to display per 1000 impressions on a network of publisher websites. Usually, the CPM rates for tier one traffic like the US, UK, and Canada are usually much higher than countries like India, Indonesia, and the Philippines. The CPM rates vary mainly due to the demand of the traffic and the advertiser pool and competition across any ad network. In this post, we will discuss the online advertising rates in India as well as the CPM rates in India. This insightful post is presented from both a publisher’s perspective and an advertiser perspective. Since both publisher and advertiser belong to the same ecosystem, it is good if both the party understand how things work and the technological setup.
Online Advertising Rates in India
As the nation is moving towards a digital economy, more marketers will be venturing to online advertising and the growth rate of online advertising in India is only going to increase. As a marketer, you have myriad options of online advertising in India which includes display ads, video ads, native ads, newsletter, mobile ads, etc. The online advertising rate card in India depends largely on the channel you’re promoting and the ad type. Rates are generally higher for video ads and standard expandable ad units. Let us take a look at the CPM rates offered across each ad network and channels (obviously the popular ones) so that publishers have an idea of the CPM positions for their websites.
ADX CPM Rates in India
Google Ad Exchange CPM rates in India varies and is based on the niche of the website and the audience type. The average ADX CPM rates tend to be around 30 cents if the majority of the traffic is coming from India. The ad exchange rates depend on a few factors like click-through, placement of the ad unit, ad size, and audience type. The best performing ADX ad units are 300×600, 300×250, 728×90. Auto-refreshing ADX units can further lower the CPMs but you can overall an overall increase in the impressions if you have a higher engagement rate on your website.
Taboola CPM Rates in India
Native ads have continued to grow over the years. Taboola is one of the popular native ad networks which help publishers monetize their Indian traffic. The network can run alongside AdSense and can supplement your overall ad revenue from native ads. The CPM rates offered by Taboola in India depends on click-through rate and the number of widgets you’re using on your website. Typically, for maximum revenue, we suggest you place 3 ad widgets- one on the sidebar, one after article content, and one in the middle of the article. Taboola uses a technology called Engage rank which helps decide the CPC of each website, which also depends on the nature of the audience. The average CPC which a publisher receives from Taboola is around 2 cents to 5 cents for Indian traffic. Mostly, it hovers around 3 cents. So, ideally, if you’re buying traffic via Taboola exchange you need to pay anywhere around 6 cents to 10 cents per click for Indian traffic. Taboola works well with social and viral traffic.
YouTube CPM Rates in India
YouTube is big in India and is one of the major revenue-generating sources for Indian vloggers and publishers. The YouTube CPM rates in India greatly vary and are highest for the technology niche. This is followed by DIY, education, and entertainment niche. With the growing number of content producers in India, the demand vs supply seems to be a bit unsettled, as the supply side is much more and given to the limited number of advertisers, the overall CPM rates for YouTube in India is gradually decreasing. The rates have much flattened in the last 2-3 years, and the current rates are much low. The average CPM rate for 1000 impressions is around USD 0.50 in India. For the tech niche, the CPM rates can be around USD 2 and above. The rates are also pretty low for an entertainment niche. and tends to be below a dollar.
Video CPM Rates in India
Video ads can be basically classified into 3 types. Pre-roll video ads, in-banner video ads, and out-stream video ads. Normally the CPM rates of in-banner video ads are comparable to the CPM rates of display ads since the bid is generally 1 cent higher than of the winning bid.
The average CPM rates for pre-roll video ads are in the range of USD 5 to USD 7 for Indian traffic. The CPM rates for in-banner ads are close to 1/10th of the pre-roll tags, i.e. 50 cents to one dollar. The CPM rates for Out-stream ads are in the range of USD 2 for Indian traffic. The only network which has an advertiser base for Out-stream ads that caters to Indian traffic is Zinc by Zedo. Generally, the CPM rates for pre-roll is generally high since the viewable metric is higher for pre-roll tags while those of in-banner.
AdSense CPM Rates in India
AdSense is one of the most sought after advertising network which has a global fill rate. The CPM rates in India for AdSense is around $1-$5. The rates highly depend on the niche of the website since AdSense targets ads contextually. If you’re running 4-5 AdSense ad units on your website, you can be earning anywhere around $3-$5. If you’re running a niche website or a tech website, the page RPM can go beyond $10 with Indian traffic if properly optimized for click-through rates. Publishers have the option to run banner ads, matched content ads, native in-feed ads, and native in-article ads (along with link ad units). Since the restriction on the number of ad units are no longer applicable, you can run as many ads on your site without compromising the overall user experience. Additionally, in-feed ads, in-article ads, and AdSense auto ads can further elevate your CPM rates if properly placed.
Admob CPM Rates in India
As AdSense is for websites, Admob is for apps. If you’re an app developer who is looking to monetize its traffic via app networks, Admob can be the first choice for you. Admob has native banners, interstitial, and rewarded video ads. The CPM rates depend on the audience targeting and the nature of the audience as well as the click-through rates on the ads. The rates per 1000 impressions of ads are listed below.
- For native banners- USD 0.10 to USD 0.50
- Interstitials- USD 1 to USD 3
- Rewarded Video ads- USD 3 to USD 5
However, like AdSense, Admob CPM depends on the click-through, and app developers are advised to set refresh functionality of Admob ads to ensure they earn the maximum CPM rates. Also, developers should be careful if they are using interstitial ads since they tend to negatively impact the user experience and should be used only at break-points to maximize overall ad revenue. There are a number of mobile ad mediation platforms that can increase your overall revenue and we recommend using one such network.
Facebook CPM Rates in India
A number of publishers who are driving their traffic from Facebook pages are using instant articles as the primary source of their ad revenue. Facebook instant articles allow publishers to automatically place ads on their content which can be controlled by pixel height. Instant articles have higher page views per visit and provide users with a faster loading experience which increases overall ad revenue. Instant article CPM rates for Indian traffic varies from anywhere around USD 0.30 to USD 2. Generally, websites on a technology niche tend to earn higher from Audience network ads and those with social and viral niche gets lower CPMs. The CPM rates are determined by complex algorithms and bidding process and are usually high if more number of advertisers are targeting the same audience. So, if your articles are displayed 4 banner ads, then you will be earning anywhere around USD 1 to USD 8 from audience network ads. The 300×250 facebook ads include in-banner videos which tend to pay higher CPMs and thus inflate the overall impression CPM. The audience network generally pays higher rates for viral Indian traffic while AdSense is recommended for niche traffic sites.
Yahoo CPM Rates in India
Yahoo has a number of ad tech products which include Media.net, BrightRoll, Yahoo Gemini. Yahoo’s India’s presence is limited and one cannot make much from Indian traffic unless the niche is global and highly targeted. Generally, media.net and BrightRoll are the products that Indian publishers can target but don’t expect to have higher CPMs unless your traffic is converting.
Factors that Determine the Average CPM Rates for Indian Traffic
CPM rates are generally high in Q4 and moderates in Q1. There are a number of factors that govern the CPM rates of ad units. The most important ones are the visibility, placement, ad unit types, ad unit sizes (300×250, 300×600, and 728×90 are the top-performing ad units) and the niche of the website. Over the years, viewability is becoming a crucial metric along with click-through rate that determines the CPM rate of the ad units. Also, for native ads, the primary metric is the number of clicks, so the positioning of the ad unit still remains extremely crucial for the overall increase in the average CPM rate.
Thus, a publisher or an app developer has the option to choose from the myriad ad networks and ad types to monetize its overall inventory. With more number of ad networks and businesses spending online, the opportunity and potential of monetizing Indian traffic and inventory are slowly increasing. The average page CPM rate in India for the year 2018 will vary from anywhere around USD 2 to USD 10 if we take into account all the aggregate ads on the page while the individual rates will be determined by the metrics as discussed above. I hope you have got some idea of the CPM rates offered for Indian traffic and would consider monetizing your inventory wisely.