What is CPM?
Cost per Mille (CPM) is often commonly known as cost per thousand (Mille in Latin means thousand) and is a measurement used in advertising on the Internet as well as in print and television media which can be purchased on the basis of what it would cost to show the advertisement to one thousand viewers (CPM).
An example of computing the CPM:
1. Total cost for running the ad is $15,000.
2. The total audience is 2,400,000 people.
3. CPM is calculated as CPM = $15,000/(2,400,000/1000) = $6.25
Effective cost per mille
Effective cost per mille (eCPM) is used to measure the effectiveness of a publisher’s inventory being sold via a CPA, CPC or CPT program. In effect eCPM will indicate to the publisher what he or she would have earned if the sold the advertising inventory on a CPM basis.
