Cost per Mille (CPM) is a common pricing model used in online advertising, where advertisers pay a fixed rate for every one thousand impressions of their advertisement. Simply put, advertisers pay a certain amount for every 1000 eyeballs on their ad.
The term “mille” is derived from Latin & means one thousand.
Formula: (Cost of Campaign/Number of Impressions) * 1000.
For instance, let’s say you’re running a display ad campaign & you’ve spent ₹15,000. Throughout the campaign, your ads were shown 1,00,000 times. CPM = (15000/100000)*100 = ₹150.