CPM stands for Cost per Mille, also called cost per thousand (in Latin and French, mille means one thousand), and implies a payout for 1000 impressions. CPM pricing model is popular in display advertising (banners, branding, video, etc.) and widely used by independent platforms, teaser networks, some services, for example, Facebook. Instagram, VK, etc.
Advantages of CPM pricing model
- In CPM campaigns, no active actions are required from users—they do not have to deposit money as in CPA or register as in CPL. The affiliate receives payout regardless of whether target audience finds advertising material interesting.
- In CPM advertising, there are usually many different targeting options available (demography, interests, occupation, and many others) that allows improving ad performance and saving budget.
- The cost is fixed in most cases making it possible to calculate conversion.
Other pricing models