In Adsterra , CPM, or cost-per-mille, refers to the amount an advertiser pays for every 1,000 impressions of an ad. It's a pricing strategy where the cost is determined by the number of times an ad is displayed, regardless of whether users click on it or not. For publishers, CPM represents how much they earn for every 1,000 ad views.
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Here's a more detailed explanation:
What it means:
CPM, also known as cost-per-thousand, indicates the price an advertiser pays for every 1,000 ad impressions.
How it's used:
Publishers use CPM to calculate their earnings per 1,000 ad views. Advertisers use it to budget for display and branding campaigns, where they want to reach a wide audience with their ads.
Factors influencing CPM:
CPM rates can vary based on the website's traffic, ad formats, audience demographics, and ad network.
CPM vs. eCPM:
While CPM is a general measure of cost per 1,000 impressions, Adsterra's blog explains that eCPM (effective CPM is a more accurate reflection of a publisher's actual revenue, as it considers all types of payouts, including impressions, clicks, and conversions.
Example:
If a website has a CPM rate of $2 and guarantees 100,000-page impressions for an advertisement, the advertiser will pay $200.
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