What is CPM?

By CleverSage | January 26, 2008


CPM is an acronym for “Cost Per Thousand” — the “M” in CPM derives from the Latin “mille” for “thousand.” CPM is commonly used in marketing as a benchmark to calculate the relative cost of an advertising campaign or an ad message. Rather than an absolute cost, CPM estimates the cost per 1000 views of the ad. - Source: IMDBPro

How is CPM calculated?

CPM Formula

Typically advertisers and publishers are on the opposite ends of the spectrum when it comes to CPM. An advertiser wants the lowest CPM to achieve the highest rate-of-return while the publisher wants the highest CPM to make more money.

Topics: Affiliates, Analytics, Pay-Per-Click (PPC) |

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