what is CPM?

CPM stands for Cost per Thousand Impressions and is a pricing model used in online advertising. In a CPM model, the advertiser pays a set amount of money for every thousand impressions (views) of their advertisement. Impressions are measured as the number of times an ad is displayed, regardless of whether it is clicked on or not.

CPM is commonly used in display advertising, where an advertisement is shown on a website or in a digital publication. The cost per thousand impressions is determined by dividing the total cost of the advertising campaign by the number of impressions in thousands. For example, if the total cost of an advertising campaign is $10,000 and it received 10 million impressions, the CPM would be $10 ($10,000 ÷ 10,000).

CPM is often used by advertisers to reach a large audience, build brand awareness, and generate impressions, rather than immediate conversions or clicks. It can be a useful pricing model for advertisers who are looking to reach a wide audience, but it can also be less cost-effective than other pricing models, such as CPC or CPA, which only charge the advertiser when a specific action is taken by the user.