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  1. #1
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    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.
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  2. #2
    You wanna' peice o' me! Automated's Avatar
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    Yes you are right, CPM means cost per thousand impressions.

    And good luck with your ad campaign.

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  3. #3
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    thanks automated
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  4. #4
    SitePoint Guru Logus's Avatar
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    CPM = Cost Per Mile

    which means cost per 1000 impression
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  5. #5
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    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. #6
    One website at a time mmj's Avatar
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    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.
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  7. #7
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    thanks for all the info...
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  8. #8
    SitePoint Addict drbones's Avatar
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    I know M= mille in latin and french..
    but isn't the M in CPM, from Roman Numerals? M being 1000?
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  9. #9
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    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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