CPM (Cost Per Mille)
A common advertising metric representing the cost an advertiser pays for every 1,000 impressions of an advertisement.
CPM stands for Cost Per Mille (mille is Latin for thousand). It is a standard metric used in the advertising industry to quantify the cost of reaching 1,000 viewers or readers.
Why CPM matters for small websites
For small publishers, understanding CPM is crucial for estimating potential revenue. Even with low traffic, a high CPM (often found in niche tech or finance sectors) can lead to significant earnings.
How to calculate CPM
The formula for CPM is:
(Total Cost / Total Impressions) * 1,000
For example, if you earn $10 from 5,000 impressions, your CPM is $2.00.
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Related Terms
Ad Impression
A metric used to quantify the number of times an advertisement is fetched and displayed on a screen.
Click-Through Rate
The percentage of users who clicked on a specific link or advertisement compared to the total number of users who viewed it.
Effective Cost Per Mille
The estimated earnings a publisher receives for every 1,000 ad impressions served, accounting for all types of revenue.
Revenue Share
A monetization model where a service provider or platform pays the content creator a percentage of the revenue generated from their work.