What is Cost Per Mille (CPM)?
CPM (Cost Per Mille) is a way to measure advertising costs. “Mille” means 1,000, so CPM is the cost or price an advertiser pays for every 1,000 views or impressions the ad gets.
For example, if a publisher (website or blog owner) charges $5 CPM, it means the advertiser pays $5 for every 1,000 times the ad is shown. It helps advertisers understand how much they’re spending to reach a certain number of people.
Formula:
CPM = Total Amount Spent / Total Measured Impressions X 1000
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