Glossary > Cost Per Mille (CPM)

Cost Per Mille (CPM)

Cost Per Mille (CPM), also known as Cost Per Thousand, is an impression-based pricing model where advertisers pay for every 1,000 impressions of their advertisement. In this model, affiliates receive a set fee for each 1,000 impressions of the advertiser’s banners displayed on their website.

What is Cost Per Mille (CPM)?

CPM is a pricing structure used in online advertising where the cost is based on the number of times an ad is shown, measured per 1,000 impressions. Advertisers pay a predetermined rate for every 1,000 times their ad is displayed to users, regardless of whether the ad is clicked or not.

This model is useful for advertisers looking to increase brand visibility and reach a wide audience. For affiliates, CPM offers a straightforward revenue model where they earn a fixed fee for displaying ads, making it an effective way to monetize high-traffic websites.

CPM focuses on ad visibility and can be particularly beneficial for campaigns aimed at building brand awareness rather than generating immediate clicks or actions.

 

Key Takeaways from the Video

  1. CPM Basics:
    Learn the fundamentals of the CPM model and how it works to drive ad visibility and brand awareness.
  2. Optimizing CPM Campaigns:
    Discover strategies for optimizing your CPM campaigns to achieve better reach and effectiveness.
  3. Affiliate Earnings:
    Understand how affiliates can benefit from CPM by monetizing their high-traffic websites through ad impressions.

Frequently Asked Questions

  1. How does the CPM model benefit advertisers?
    Advertisers benefit from CPM by paying for the visibility of their ads rather than clicks. This model allows them to reach a broad audience and increase brand exposure effectively.
  2. How do affiliates earn with CPM?
    Affiliates earn a set fee for every 1,000 impressions of the advertiser’s ad displayed on their site. This model provides steady revenue based on the volume of ad views.
  3. What are the advantages of using CPM?
    CPM is advantageous for building brand awareness and reaching large audiences. It is particularly useful for advertisers looking to achieve high visibility and for affiliates with high-traffic websites.

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