CPM or cost per mille is an advertising pricing model that places a value on each thousand impressions ad receives. Advertisers bid on ad space by setting a maximum amount they are willing to pay for each 1000 displays.

Why Do You Need to Understand CPM?

Google, LinkedIn, Facebook and other advertising providers use the CPM model to price impressions on the ads they display. These ads may be shown beside search results on Google, Bing, or other search engines, or in social activity streams on Facebook, Twitter, or LinkedIn (as shown below). It is important to understand the price model to ensure your ad campaign earns the best return on your investment. The other type of price model most common is CPC, or cost per thousand impressions.

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