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What is CPM?

What is CPM?

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CPM is a measurement of the cost of advertising impressions measured in units of a thousand.

CPM stands for cost per M, where M is the roman numeral for 1,000.

Many publishers of banner or text ad impressions will for provide the CPM for an ad package for the benefit of the advertiser. This provides a good way to compare advertising costs charged by different publishers primarily because the number of exposures provided in different plans tend to vary, along with the total plan price, however the CPM compares costs with a consistent unit of measurement.

If you know the CPM and CTR for advertising, you can compute the actual cost per click, also known as CPC.

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