# Thread: CPM - an explanation

1. ## CPM - an explanation

I'm fairly new to internet advertising and I was hoping someone could explain to me about CPM charges. I know that CPM means (cost per thousand impressions), what I don't know is how they charge for CPM. I've visited a site recently and it says that it charges \$8.00/CPM. Does that mean:

a) I pay only \$8 for a thousand impressions, or
b) I pay for \$8x1000 = \$8000 total per thousand impressions.

I'm assuming the answer is a. Therefore, if I wanted 10,000 impressions then it would cost \$80. Am I right?

I know this is peanuts to some but some explanation would really help. I'm really new to this stuff.

Thanks.

2. Yes you are right, CPM means cost per thousand impressions.

Matthew Taylor

3. thanks automated

4. CPM = Cost Per Mile

which means cost per 1000 impression

5. If you've got a site like mine that has a forum as the main feature, so a lot of page views, compared to visitors then CPM is what I would reccomend

6. ## Re: CPM - an explanation

Originally posted by m00ds
I've visited a site recently and it says that it charges \$8.00/CPM. Does that mean:
What it probably means is that the site will sell advertising for a lot less than \$8 CPM Most sites advertise much higher prices than they end up selling at. It's up to you to bargain.

Yep, the M means mille, which means one thousand in Latin.

In click based advertising, the meaning of CPC gets more confusing. Some people use C to stand for "centum" (one hundred) and some people incorrectly use it to stand for "Click". So, one person's \$8.00 CPC might be the same as another person's \$0.08 CPC.

7. thanks for all the info...

8. I know M= mille in latin and french..
but isn't the M in CPM, from Roman Numerals? M being 1000?

9. You are totally correct. But there is some more that needs to be added in the description. Most advertisers will ONLY pay for American / western European traffic. Advertisers always set a frequency cap for their campaigns. So, you will get paid per unique visitor counted on a 24 hour cap to as high as 7 day cap.

So, when an advertiser says they will pay \$8.00 CPM, they mean \$8.00 per 1000 unique visitors form certain countries unless specified differently)

Hope this helps
Erik

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