CPM, or Cost per Mille, is a unit of measurement for online advertising that represents the price of 1,000 ad impressions. Advertisers pay a flat rate per 1,000 ad impressions, regardless of whether or not anyone clicks on the ad. Advertisers use this pricing model to display ads on websites and applications. It enables businesses to reach a large audience and increase brand visibility effectively. CPM assists advertisers in determining the cost-effectiveness of their campaigns and the cost of reaching a particular audience size. CPM is a crucial determinant of ad revenue for publishers, influencing their income based on the number of impressions their platform generates. The success of the advertising ecosystem is dependent on advertisers and publishers striking a balance.
