SEM Term CPM: What is CPM

What is CPM:

CPM stands for Cost Per Mill-ion or Thousand (M stands for the Roman Numeral " M " for thousand). The publisher pay rate is based on units of 1,000 banner impressions. The standard CPM pay rate is a 45% revenue share per 1,000 impressions.

CPM is used by Internet marketers to price ad banners, these ad banners may be a text based advertisement or graphical based ad (such as banners, Panels, leader boards, skyscraper, or others visit to see Google ad Banner Examples. Sites that sell advertising will guarantee an advertiser a certain number of impressions (number of times an ad banner is downloaded and presumably seen by visitors), then set a rate based on that guarantee times the CPM rate. A Web site that has a CPM rate of $25 and guarantees advertisers 600,000 impressions will charge $15,000 ($25 x 600) for those advertisers' ad banner.