cost per mille (1000) is the most used metrics on the web world. It is the cost that has to be paid by an advertiser for serving 1000 impressions .Example : In a campaign , say an Ad of 728×90 is running and the CPM set is $10 and the impressions to be served is 1,00,000 , what will be the actual cost to the advertiser ?
The formula for CPM Cost to an Advertiser = CPM x (Impressions / 1000)
Cost to an Advertiser= 10 x (1,00,000/1000) = 1000
So , advertiser has to pay $1000
When CPM needs to be calculated : use the final cost.
CPM = Cost to an Advertiser x 1000 / Impressions
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