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: