What is CPM ( Cost Per 1000 Ad Impressions) Advertising Program

CPM is known as Cost Per Mile or Cost per Thousand Ad Impressions and also called CPI. CPM term is use to define 1000 ad impressions where ‘M’ is From Roman Word which means Thousand. So ‘M’ term is use in CPM. Revenue from these types of Ad is depend upon total number of view or impressions make by using site or blog. Mostly this is a best choice for site which have good visitors flow and can easily make create number of impression and views. CPM is an effective and best method for earning revenue through your site or blog. Many Advertisers or Publisher use PPC method which is based on click system but CPM is totally different and safest from it. As in earlier post i ready discuss about what is PPC and Some Best PPC networks. I recommend to also read that article.

How CPM – Cost Per Mile Works ?

CPM ads are totally based on impressions made by visitors on different pages. There is no difference between the ads type it is same as CPC ads but CPC depend on the click and CPM depend on the Impression or page view only. These CPM ads required good visitors flow on web pages to earn revenue. In simple word suppose if your blog or site having CPM based ad banner then for every total 1000 ad impressions you will earn revenue. But these CPM rates are may be Flat rate Based or Bid rate based depend on the advertisers choice. But these CPM rates are derived as

CPM =  Advertiser Budget cost / Total Ad Impression

On the bases of total budget set by advertiser to the total ad impression let take an example

If Advertising Budget is of $10,000
Total estimated Audience is 1,000,000
Then ($10,000 / 1,000,000) = 0.01
CPM = 0.01 x 1000 (ad impressions) = $10

These CPM rates are only an estimated for example it may be lesser or more depend on the advertisers set budget.

So this example explains that if the advertiser offers $3 for CPM rate it means publisher will earn $3 for every 1000 impression from your web page.

In this article i try to explain in short about CPM and its working. If you enjoy this article and learn something then must this with friends and others.

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