Advertising - Cost per mille (CPM|eCPM)

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1 - About

Cost Per Mille (CPM) is a pricing model

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).

Advertising

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

Advertising

5 - Ad type

5.1 - Contextual

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

6 - Documentation / Reference