What is CPM rate?
CPM rate or “Cost per Mile” rate refers to advertising costs per one thousand views to a particular ad. Ads may be online, on TV, or on the radio and it doesn’t matter if the customer only “viewed” the ad or made a purchase afterwards. A CPM rate of 10 means you need to pay ten (10) dollars for every one thousand views of your ad on a website for example.
CPM, also called ‘CPT ‘“ Cost per Thousand’, is one of the most commonly used benchmarks in the online advertising business today. Other benchmarks include CPA or “cost per action” wherein a specific task is performed to indicate an “action”. Examples of this type include purchase of a product or filling out of survey forms. Another benchmark is called CPC or “cost per click” which involves actual clicking of an ad. In contrast, CPM pertains to “ad viewing” only. In this type, advertisers will pay for the amount of traffic that “views” the particular ad.
CPM advertising commonly involves some sort of network which brings together an advertiser and a website publisher. A particular advertiser may want to reach specific markets and using the network, he/she will have access to websites or publishers that attract the same market he/she is interested in. Through the CPM network, advertisers will be given help and advice on how to create ads and setup the ad campaign. And as for the publishers, they can also gain from the network through the cost of the ads. They can easily have contact with specific advertisers to place ads on their sites and make money out of it.
Many advertisers prefer the Cost per Mile (CPM) scheme because of lower costs. It also benefits many website publishers as it does not require any product purchase or viewer action to complete the ad campaign.