What is Cost per Mille (CPM)?
Cost per mille (CPM) is a pricing model in which advertisers pay per thousand impressions of their ads. “Mille” is the Latin word for “thousand” and is often abbreviated as “CPM”. This pricing model is often used for display advertising, where the advertiser wants to ensure that a large number of people see their ad to increase brand awareness. You can calculate CPM as follows:
Advertising cost / number of impressions in thousands = CPM
For example, if an ad campaign costs $1,000 and receives 2 million impressions, the CPM would be $1,000 / 2,000 = $0.50. This means the advertiser would pay $0.50 for every thousand times their ad is viewed.