CPM – What is it?

CPM is an acronym for Cost per mille (cost per thousand).  It’s generally used to describe a billing unit for banner advertising.

Here’s a real life example of how it’s used:  A publisher or ad network contacts you and tells you that they have available banner inventory (aka impressions)  and they tell you that the CPM is $12.50.  This means you would pay $12.50 every time your banner is displayed 1,000 times.

So, if you do an “ad buy” of 1,000,000 impressions, your cost would be $12,500.

Here’s the formula to calculate CPM: (impressions / 1000) * CPM

This entry was posted in Banner Advertising. Bookmark the permalink.

Leave a Reply