What is CPM?

Cost per thousand impressions, better known as CPM in the online marketing world, literally means “Cost per thousand”. The thousand refers to the number of impressions. Therefore, the CPM is the cost per thousand views.

Here we are mainly talking about the representations of a certain type of advertising, usually in the form of a banner on a website or Facebook advertising. CPM is generally applied when people want to increase brand awareness by displaying ads.
What are the benefits of CPM?

The biggest advantage of CPM is that a publisher (the person who places the ad on your site) has a very clear view of revenue (or spend). He can see how many times the web page on which the banner is displayed in an ad has been visited and also knows immediately how many times the ad has been displayed.

So, to increase revenue through CPM you have 2 options. On the one hand, you can add more valuable content to your website so that you get multiple ad impressions. On the other hand, you can negotiate a higher payout per 1000 impressions. Want our opinion? Opt for both and get maximum results.
What to watch out for with CPM!

If you are an advertiser, you are going to create a banner or ad and look for relevant sites that want to display your ad. However, be sure to properly negotiate the placement of your ad. It doesn’t necessarily mean that if the page has been viewed 10,000 times, your ad has been viewed that many times.

In reality, you should view it as a digital property. And just like in the real estate world, only one thing is important: location, location, location. If your banner is at the bottom of a page, the chances of it being seen with each page view are much lower. It stands to reason that you will pay less CPM for a lower placement than with a placement at the top of the page. Therefore, establish well in advance where your ad will be placed and how much you will pay for it.
How to calculate your CPM?

When it comes time to prepare your invoice, you must first calculate your CPM. Fortunately, this is not difficult at all.

As an example, suppose your page has been viewed 370,000 times and you will receive €3.50 per CPM. Then the calculation for this is as follows:

370,000 / 1,000 impressions = 370 x 3.5 = 1,295 euros.
Terms related to cost per thousand impressions (CPM)


About the Author: AdmediaTex

Blog Dedicated to Advertising Tutorials for Publishers and Advertisers on AdmediaTex.