Cost per mille (CPM)

Cost per mille (CPM) is a pricing model used in online advertising that measures the cost of an ad campaign based on the number of impressions the ad receives. “Mille” is the Latin word for thousand, so CPM is typically expressed as the cost per 1,000 impressions.

For example, if an advertiser is charged a CPM of $2 for an ad campaign, this means that they will pay $2 for every 1,000 impressions the ad receives. CPM is typically used to charge for display and banner ads, as well as some video ads.

CPM can be a useful metric for advertisers to track, as it allows them to understand the cost of reaching a certain number of people with their ad campaign. However, it is important to consider the quality of the impressions generated by the campaign, as reaching a large number of people who are not interested in the product or service may not be as valuable as reaching a smaller number of highly targeted and engaged users.