Tuesday, 24 July 2007

CPM Explained

CPM is an abreviation for cost per thousand impressions where M stands for the latin term for one thousand. The abreviation is a throw back to print advertising where the term meant cost per thousands of homes the publication would reach.

In a Google Adwords context it relates to site targeted advertising where you will pay a set amount for one thousand impressions of your ads on a site or type of site your select during ad creation, as opposed to pay per click advertising when an advertiser only pays when the ad is clicked upon.

CPM ads can be text ads, image ads or click to play video ads, and they are generally used when a company is trying to build brand awareness. An example of this could be a car company who has released a new model and they want to pay for repeated image ads to be displayed on a leading car review site which runs adsense advertising.

I hope that clears up any questions on what CPM or cost per impression is.
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