If you’re new to online advertising, you may come across the term “CPM,” which stands for “cost per mille.” This term is often used in ad networks and programs, and it refers to the cost an advertiser pays for every 1,000 impressions of their ad.
In other words, if an advertiser has specified a CPM of $2, that means they will pay $2 for every 1,000 impressions of their ad, regardless of whether or not someone actually clicks on it.
CPM is generally used for display advertising (such as banner ads), as opposed to pay-per-click (PPC) advertising like Google AdWords, where advertisers are charged each time someone clicks on their ad.
CPM is often used as a benchmark for ad network pricing, as it gives publishers (website or app owners who display the ads) an idea of how much they can expect to earn for each 1,000 impressions of an ad.
It’s important to note that CPM can vary widely depending on the ad network, the target audience, and the type of ad being displayed. For example, a highly targeted ad displayed to a niche audience may command a much higher CPM than a generic ad shown to a broad audience.
Overall, CPM is a common metric in the world of online advertising, and it’s worth understanding if you’re looking to advertise on the web.