What is CPM?
CPM stands for Cost Per Mille, or Cost per Thousand impressions, and is a method of buying online media. It is a form of online advertising where advertisers pay for each time their ad is displayed, usually on a website, app, or other digital platform.
How does CPM work?
In CPM advertising, advertisers pay for each time their ad is displayed to a thousand people. Advertisers pay for the number of impressions their ad receives, rather than for the number of clicks it receives. In other words, advertisers pay for the number of times their ad appears on a website, within an app, or on another digital platform.
Examples of CPM
Here are some examples of how CPM works:
- A website charges $10 CPM for an ad. This means that an advertiser will pay $10 every thousand times their ad is viewed.
- An app charges $20 CPM for an ad. This means that an advertiser will pay $20 every thousand times their ad is viewed within the app.
- A digital platform charges $30 CPM for an ad. This means that an advertiser will pay $30 for every thousand times their ad is viewed within the platform.
Why use CPM?
CPM is an effective way for advertisers to reach their target audience and get the most out of their online advertising budget. With CPM, advertisers can focus their budget on the impressions that matter most and maximize their return on investment.
Conclusion
CPM is an effective way for businesses to reach their target audience and maximize their online advertising budget. Advertisers can focus their budget on the impressions that matter most and get the most out of their advertising spend. For more information about CPM and other online advertising methods, check out Wordstream’s guide to CPM or Forbes’ guide to CPM advertising.