Cost per thousand impressions.
It is advertising bought on the basis of impression.
The total price paid in a CPM deal is calculated by multiplying the CPM rate by the number of CPM units. For example, one million impressions at $10 CPM equals a $10,000 total price.
1,000,000 / 1,000 = 1,000 units
1,000 units X $10 CPM = $10,000 total price
The amount paid per impression is calculated by dividing the CPM by 1000. For example, a $10 CPM equals $.01 per impression.
$10 CPM / 1000 impressions = $.01 per impression
Yeah, CPM is what Judy said it was. CTR (click through rate) and CPC (cost per click) is what you should be more concerned with. You can have a very high-traffic website, for example, and even if your CPM is decent, you will make very little money. Actually, I wonder why advertisers even pay for impressions anymore, considering the advertising options that are available these days. I make almost all of my online money through PPC (pay per click) adverts, although I don't have any on this particular website (HP), at the moment, but I may do so eventually...
At any rate, good luck with the online revenue; cheers!
This means payment in one thousand impressions made from your site page.
Judy is right:
one million impressions at $10 CPM equals a $10,000 total price.
1,000,000 / 1,000 = 1,000 units
1,000 units X $10 CPM = $10,000 total price
The amount paid per impression is calculated by dividing the CPM by 1000. For example, a $10 CPM equals $.01 per impression.
$10 CPM / 1000 impressions = $.01 per impression
Thank you for all the answers guys, I love this community, everyone is so helpful...
Well Judy Razon explained very well. I don't need anything remained there to explain about CPM
Cost per mille, aka Cost per impressions. Basically it is the amount of money that companies pay for their ad to appear on sites a 1000 times.
I've just finished a hub to answer a very similar question, you can read it here:
http://zsobig.hubpages.com/hub/CPM-and- … dvertising
I hope I could help!
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