Author:   Add date: 10/25/2007   Publishing date: 10/25/2007   Hits: 77

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CPM Definition Cost per thousand impressions. Information The CPM model refers to advertising bought on the basis of impression. This is in contrast to the various types of pay-for-performance advertising, whereby payment is only triggered by a mutually agreed upon activity (i.e. click-through, registration, sale). The total price paid in a CPM deal is calculated by multiplying the CPM rate by the number of CPM units. For example, one million impressions at $10 CPM equals a $10,000 total price. 1,000,000 / 1,000 = 1,000 units 1,000 units X $10 CPM = $10,000 total price The amount paid per impression is calculated by dividing the CPM by 1000. For example, a $10 CPM equals $.01 per impression. $10 CPM / 1000 impressions = $.01 per impression

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