CPM advertising is also referred as CPI (Cost per impression )/1000. it is the terminology which is generally use in online advertising and marketing based on website traffic. If 0.002$ is CPI then it means that advertiser allows you to earn 0.002$ per page view (condition: if your web page has contain ads in it). Cost per 1000 impression means if you multiply CPI with 1000 then you will get Cost per thousand impressions(CPM).
Cost per thousand impression(CPM) is mostly used by advertiser rather than CPI. However, CPI and CPM both are the similar terms. but CPM is preferable because to make the number easier to manage. so one has to only focus on 1000 ads impression instead of 1 ad impression.
FORMULA : CPM = CPI* 1000
Where CPI = cost of advertising/number of impression
Here I want to differentiate between impression and page view
If someone visiting your website and he lands up a page which consists of one ad on it. here visitor viewing your page. so this is referred as a page view. And he also sees ads exposing on your web page so this is referred as the ad impression.
so here page view is one and ad impression is also one. the impression is only counted if user visiting the web page. But not to consider if the user trying to refresh the web page.
CPM advertising is developed by an advertiser to increase the product awareness for visitors.
How to increase CPM Advertising
1. TO Increase web traffic: increase in traffic may result in more ads impressions.
2. Quality content
3. focusing high paying keyword (Which have high CPC or CPM Advertising cost)
4.Types of ads that you are placing on your web page
Difference between CPM and CPC
1. CPC refers to cost per click but CPM refers to cost per mile
2. CPM advertising is something in which advertiser continuously pay to publisher. but CPC advertising is something in which advertiser is only paying for the valid click.
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