Online Advertising CpmCpm online advertising
Costs per thousand - CPM
Also known as costs per thousand, costs per mill is a concept of advertising that refers to the amount of 1,000 advertising ads on a website. When a website publishers charge $2.00 CPM, this means that an affiliate must spend $2.00 for every 1,000 views of their ad. In CPM, the "M" stands for the phrase "mille", which is the Latin for "thousands".
How much is the per thousand charge? Marketers often gauge the effectiveness of a CPM ad campaigns by the click rates, i.e. the proportion of individuals who have seen and clicked on your ad. A display that gets two hits per 100 images, for example, has a 2% CTR. They cannot judge the effectiveness of an ad by CTR alone, because an ad that a person looks at but does not click on can still have an effect.
Others price schemes involve per click costs, where the affiliate will pay each click a website user makes on the ad, and per buy costs, where the affiliate will only pay each click a website user makes on the ad. The CTR is less important in this case because exposing an ad by placing it on a high-frequency website will help advertise a company's trade name or embassy, even if it is not clicked.
Businesses that focus less on high-volume advertising and more on advertising to a small market segment tend to use CPC or rather less on advertising to a small market segment because they only need to buy when a visitor clicks on their website or buys the promoted item. Web site editors like CPM advertising because they are rewarded for only placing advertisements.
Since CPM is low - the above $2.00 is fairly standardized - a website needs strong trafficking to make good business with CPM advertisements. The number of ad displays may differ from the number of visits to the website that the ad displays.
Advertisers pay for two images per page impression in this case.