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What is Cost Per Mille (CPM)?

What is Cost Per Mille (CPM)?

Cost per mille (CPM) :-  A system where an advertiser pay and agreed amount for a number of times an ad is seen, regardless actually how many people click on that links. The “Mille” is refers to 1000 (one thousand) viewings of the ads.

Cost Per Mille (CPM) is a pricing model used in online advertising to determine the cost of displaying an ad 1,000 times. The "mille" in CPM is Latin for "thousand", and the model is used to measure the cost of impressions rather than clicks.

Under the CPM model, advertisers pay a fixed price for each 1,000 impressions of their ad, regardless of whether the ad is clicked on or not. This model is commonly used for display and video advertising, where the goal is to reach a large audience and build brand awareness rather than generate direct conversions.

CPM is typically expressed as a cost per 1,000 impressions, such as $5 CPM, which means the advertiser would pay $5 for every 1,000 impressions of their ad. The cost of each impression can vary widely depending on the target audience, ad placement, and competition for ad space.

Advertisers use CPM to determine the cost-effectiveness of their advertising campaigns, measure the reach and impact of their ads, and track the return on investment (ROI) of their advertising efforts. By understanding their CPM and the cost of each impression, advertisers can adjust their advertising strategies and budgets to optimize their results and achieve their marketing goals.

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