Cost Per Mille. Usually reflects the price of 1000 banner impressions in dollar currency. Payment depends on the number of impressions solely. For example, a banner is being shown 200,000 times at CPM of $0.5, means that the payment by the advertiser to the publisher would be 200,000 * 0.5 / 1000 = $100.
- The advertiser knows exactly how many times the banner will be shown, and what would be his daily / total costs.
- Common model when buying media against a specific URL / site / ad spot.
- CPM is being prioritized first by ad-networks since the publisher knows exactly what the expected revenue per impression is.
- Very weak performance matrix, very weak correlation with sales or leads.
- No indications for the advertiser on banner, campaign or media quality.
- When dealing with multiple sites or ad spots advertiser might receive cheap media instead of effective media.
- Effective frequency capping is unknown.
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