CPM - an explanation

[m00ds]

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.

[Automated]

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

And good luck with your ad campaign.

Matthew Taylor

[m00ds]

thanks automated

[Logus]

CPM = Cost Per Mile

which means cost per 1000 impression

[veedee]

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

[mmj]

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.

[m00ds]

thanks for all the info...

[drbones]

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

[erik-1stadclick]

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