What is CPM? CPM stands for Cost Per Thousand, also called Cost Per Mile. In the online marketing business its used to denote the price of an advertisement by 1000 visits. When you fill in 3CPM you will pay 3 USD for 1000 visits. So when you bid 3 CPM its also 0,003 CPC. The M from CPM is from the latin word “Mile” that means thousands.
How CPM is calculated
How CPM is calculated: it’s the total amount spent on an ad campaign divided by the total impressions multiplied by 1000.
Example CPM calculation:
Example CPM calculation:
Spent: $30
Views: 10.000
Calculation: 30/10.000 = 0,003 * 1000 = 3
Your CPM will be $3
Your CPM will be $3