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Glossary

CPM

Cost per thousand impressions. The "M" means thousand, not million. The amount an advertiser will pay for each 1000 ads shown. Some ad campaigns are sold by CPM, while others are priced by click or another measure. Effective CPM is a useful measure of a campaign's profitability. The total price paid in a CPM deal is calculated by multiplying the CPM rate by the number of CPM units. For example, one million impressions at $10 CPM equals a $10,000 total price. 1,000,000 / 1,000 = 1,000 units 1,000 units X $10 CPM = $10,000 total price The amount paid per impression is calculated by dividing the CPM by 1000. For example, a $10 CPM equals $.01 per impression. $10 CPM / 1000 impressions = $.01 per impression http://www.marketingterms.com/dictionary/cpm/