CPM is a metric that you can use to understand how advertisers are spending on your traffic. You can think of CPM as a pricing tool.
CPM stands for cost per mille (cost per 1000). It is the unit used to define the price of 1,000 ad impressions.
Knowing how much advertisers are spending gives you insights into what’s working as well as where you can make improvements. CPM is also one part of the equation you can use to better understand your earnings.
CPM * IMPRESSIONS / 1000 = YOUR AD REVENUE
How we use CPM
CPM is used to set pricing with ad partners. It gives advertisers a minimum price, or reserve price, that they must pay in order to buy inventory on your site.
EXAMPLE: If an advertiser is willing to pay a CPM of $2.25, that means they’ll pay $2.25 for every 1,000 times an ad is shown.
Details that can impact CPM
CPM can be impacted by a number of factors and details both on your site and with your traffic.
- Countries of origin (where your readers are browsing from)
- Brand safe content
- Time on site (indicates reader engagement)
- Viewability (measures if ads were seen)
- Holidays
- Browsers
- Devices
- Traffic sources
- Grow users
- And more!