Advertising - Cost per mille (CPM|eCPM)

1 - About

Cost Per Mille (CPM) is a pricing model. It's is the advertising cost per thousand impressions viewed.

It's derived from the Latin word mille which means one thousand.

It’s the value of an individual ad impression, especially from the advertiser's perspective.

Based on how many impressions a single ad gets.

Direct sales are almost always priced in fixed CPM rates, where the inventory is sold in bulk and all impressions are essentially priced the same (e.g., $10 CPM, or $10 per thousand ad views).

3 - Usage

Cost per thousand impression campaigns produce:

  • certain revenue for the publisher
  • uncertain results for the advertiser.

It dominates the content sites and is generally used with large, brand-oriented banner ads.

3.1 - Advertiser

CPM works well for advertisers who are interested in raising the brand awareness

It can track:

3.2 - Publisher

CPM works well for publishers with a large audience and a growing number of monthly pageviews.

4 - Example

  • if you charge a CPM of $10, that means you’ll earn $10 for every 1,000 advertisements that a visitor sees on your website.
  • $3 - High
  • $1,50 - Low

5 - Ad type

5.1 - Contextual

Contextual ads such as Google AdSense and can produce the equivalent of $1-5 CPMs per ad unit based on the click-through rate.

6 - Documentation / Reference

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