CPM (Cost Per Mile/Thousand)

March 21, 2015 11:01 - Views: 2740

CPM refers to an online advertising program or model purchased and based on the basis of a thousand page impressions (page views or page loads)

If an advertiser purchases a CPM advertising program at $10 CPM, then that means the advertiser will pay the publisher $10 per thousand impressions.

If you have a blog or website and use a CPM advertising program on it with a $10 CPM, then the advertiser or advertising network will pay you $10 per thousand impressions generated from the web pages on your blog or website.

The total amount paid in a CPM advertising program is calculated by multiplying the number of CPM units by CPM rate:
CPM units = (Impressions/1000)
Total price = CPM unit(s)* CPM rate ($)

For example, if an advertiser wants to display 100,000 impressions at $10 CPM rate, then the total price for the CPM advertising deal for the advertiser will be the following:
CPM units = 100,000/1,000 = 100 units
Therefore, total price = 100*10 = $1,000

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