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Impressions for sure.
However, to placate advertisers and to justify your CPM rate, provide advertisers with an average expected CTR number; don't guarantee it, but explain that other advertisers are getting X and the new advertiser likely will too with well designed, targeted ads tailered to your visitors.
CPC is on the way out anyways in large part due to click-fraud, tracking hassles, etc ...
And mainly because impressions alone have value in helping to make people aware of a product, branding, etc...
Websites that only charge advertisers by CPC, unless they use sliding scale pricing (difficult to do effectively unless one has numerous concurrent advertisers) like Google does, are often leaving a lot of money on the table.
Some advertisers who are primarily seeking exposure and/or don't care about CTR will even purposedly run ads designed to get low CTR on websites that charge by CPC to save money.
Ron
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Domagon - Website Management and Domain Name Sales
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