Can anyone explain CPM and how its calculated/determined?

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  1. profile image60
    ElleBeeposted 11 years ago

    Can anyone explain CPM and how its calculated/determined?

    I understand the ratio between CPM and my earnings but which comes first/determines the other?  How can CPM change so much,  have one random day with a CPM of over $40 which is much, much higher than my average. How can a spike like this happen?

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  2. profile image0
    JThomp42posted 11 years ago

    CPM stand for "Cost per Mill" which is really an outdated way of charging. It means a cost per 1,000 (banner) impressions on your website. It was popular 5 years ago but the problem was it never really worked as there was no correlation between impressions and buyers.

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    1. profile image60
      ElleBeeposted 11 years agoin reply to this

      Yeah I knew the abbreviaton but wasn't really understanding the relationship between my views, CPM, and earnings - are my earnings determined by my CPM or is CPM figured out first and my earnings are based on what my CPM is that day?

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  3. Jamie Brock profile image92
    Jamie Brockposted 11 years ago

    ElleBee- I wish I could help you out but I am still unsure about exactly how it works... glad you asked the question though.. look foreword to reading some of the answers so I can understand more myself smile

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