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Cost Per Mille
What is CPM?
In the CPM or Cost Per Mille model, advertisers pay publishers/app developers a fixed amount for every 1000 impressions on the ad shown on the publisher’s app.
CPM is an important metric for advertisers as it indicates the amount they pay for the ad space. On the other hand, it defines the value of the publishers’ ad space and helps in calculating the revenue per 1000 impressions.
The formula for CPM is as follows:
CPM = Cost / Impressions X 1000
Advertising revenue is the earnings that digital domains like apps or websites make from in-app advertising or showing paid adverts to their audience.
Cost Per Click
In the CPC or Cost Per Click model, advertisers pay publishers a certain amount for every click the ad receives. CPC is sometimes referred to as PPC or Pay Per Click.
eCPM or effective cost per thousand impressions (mille), is the revenue publishers generate for every thousand ad impressions. The higher the eCPM, the better the revenue.
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