October 27th, 2012 | by onlineincomejobs.com

CPM or also known as cost per thousand is a technique to estimate the cost of displaying any advertisement on a web page. It is sometimes confused with pay per click but cost per thousand is totally a different marketing and advertising technique. In pay per click, it is observed that how any clicks your advertisement gets whereas in cost per thousand it is observed that how many times an advertisement is displayed on a web page. For example the cost per thousand of an advertisement is $40 then whenever the ad is viewed by web users a thousand times the advertiser will be charged $40. CPM is an abbreviation of Cost per mile. Mille is a Latin word which means thousand. CPM advertising is not really used to sell some products online. It is mainly used by those companies who want that their brand name or logos should be recognized worldwide.


CPM is used both in online advertising as well as in offline marketing like television ads, newspaper ads etc. most of the advertiser prefers cost per mille to pay for their advertisement because other advertising techniques like PPC, CPA are not much cost effective. If you choose cost per mille advertising technique then you will come to know about how much your ad is being viewed and you will be charged only when your ad gets one thousand views.


Revenue which you can generate using CPM depends on your website traffic because in CPM you pay for every thousand views of the ad. So the main factor which decides your earnings through CPM advertising is the traffic you get on your website. Other factors on which your CPM earning depends are:

  • The position of the ad: The place where you position your ad has a great impact on your earning through CPM. If you place your ad in a place where it is not clearly visible to the web user then your earning will go down.
  • CPM Network: The CPM network you use also plays an important role in helping you generate more revenue from your CPM campaign. There are several CPM networks like ADSDAQ, Tribal Fusion, Burst Media and many others.
  • Type of ad: Type of ad is also an important factor which decides your CPM earning. If the ad is according to the interest of web user then you can earn more from your CPM advertising.
  • Size of Websites: CPM advertising is not much suited to small scale websites because they don’t have much traffic to their website so they will not be able to generate revenue through cost per mille advertising. CPM is mostly used by large scale websites because big websites have lots of viewers hence they have much more traffic than small websites. As visitors are more so generating revenue is much easier for these kind of websites. Web sites which provide entertainment to people mostly use CPM advertising. For example YouTube uses CPM advertising because it contains videos and millions of people visit YouTube daily to view these videos. So YouTube is generating a lot of revenue through this technique of advertising.