What is CPM advertising


What is CPM Advertising?

CPM advertising is also referred as  CPI (Cost per impression )/1000.  It is the terminology generally used in online advertising and marketing based on website traffic. If  0.002$ is  CPI then it means that advertiser pays you 0.002$ per page view (condition: if your web page has contained ads in it). Cost per 1000 impression means if you multiply CPI by 1000 then you will get  Cost per thousand impressions(CPM).

Cost per thousand impressions (CPM) is mostly used by the advertisers. 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

You might be confusing what is the difference between impression and pageview? Let me explain both the terms to you. 

If someone visiting your website and lands up a page which consists of one ad on it.  Now, if visitor viewing your page and while scrolling he also sees ads exposing on your web page so this is referred as the ad impression.

So, here the page view is one and ad impression is also one. The impression is only counted if the user visiting the web page. But not considered 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. By Increasing 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 which advertiser continuously pay to publisher. but  CPC  advertising is something which advertiser is only paying for the valid click.



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