What is a Cost Per Mile - CPM
Cost per mille is a marketing term used to denote the price of 1,000 advertisement impressions on one webpage. If a website publisher charges $2.00 CPM, that means an advertiser must pay $2.00 for every 1,000 impressions of its ad.
CPM is the most common method for pricing web ads. Advertisers frequently measure the success of a CPM campaign by its click-thru rate, which is the percentage of people who saw your ad and clicked on it. For example, an advertisement that receives two clicks for every 100 impressions has a 2 percent CTR. You cannot measure an advertisement’s success by CTR alone because an ad that a reader views but does not click may still have an impact.
CPM vs CPC and CPA
CPM represents one of several methods used to price website ads. Other pricing models include cost per click, where the advertiser pays each time a website visitor clicks on the ad, and cost per acquisition, where the advertiser only pays each time a website visitor makes a purchase after clicking an ad.
More about CPC and CPA in some of the next blogs.
Impressions vs. Pageviews
Impressions refer to the number of times a visitor sees a specific element of a page - usually an advertisement of some sort. Impressions are often used to calculate how much an advertiser pays to display his message on a website. Each time a person loads a page and the ad pops up, it counts as one impression.
Pageviews is the total number of pages viewed. Repeated views of a single page are counted.
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