The definition of CPM

CPM (Cost Per Mille) is the charge for showing 1,000 impressions of a banner or text advertisement.

Advertising on a CPM base means that the advertiser has to pay for any shown banners, even if they have not received any clicks. Therefore it is often used for branding campaigns, to create awareness or demand for a new product or service, or for products that are of interest for a broad audience and easy to buy online (for instance, ringtones).

CPM is often used by media agencies or media networks, but also available within PPC networks such as Google AdWords. Also, CPM is often combined with ROS (Run of Site) or RON (Run of Network).

 

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