What is #CPM (Cost Per Mille) work in ditails, #costpermile, #cpm, #AdSense

CPM stands for "Cost Per Mille" or "Cost Per Thousand." It is a pricing model used in digital advertising where advertisers pay for every 1,000 impressions of their ad. The term "impression" refers to the display of an ad to a user on a web page or a mobile app.

Here's how CPM works in more detail:

Advertiser and Publisher: An advertiser is a company or individual who wants to promote their product, service, or brand. The publisher is the owner of a website or app who wants to monetize their digital property by displaying ads.

Ad Inventory: The publisher allocates space on their website or app for displaying ads. This space is known as ad inventory.

Ad Request: When a user visits a web page or uses a mobile app, an ad request is sent to the ad network or ad exchange. This request contains information about the user, the context of the page or app, and available ad slots.

Ad Serving: The ad network or ad exchange receives the ad request and matches it with relevant ads from advertisers who have bid on that specific audience or ad placement.

Ad Impressions: If a matching ad is found, it is served and displayed to the user on the web page or app. Each time the ad is displayed to a user, it counts as one impression. For example, if an ad is viewed by 5,000 users, it would generate 5,000 impressions.

CPM Calculation: The CPM is calculated by dividing the total cost of the ad campaign by the number of impressions, and then multiplying by 1,000. It represents the cost that the advertiser pays for every 1,000 impressions.

CPM = (Total Cost / Impressions) * 1000

Payment: The advertiser is billed based on the total number of impressions their ad receives. The payment is typically made to the ad network or ad exchange, which then shares the revenue with the publisher.

CPM is often used as a pricing model for brand awareness campaigns, where the goal is to reach a large audience and create exposure. Advertisers can compare CPM rates across different publishers or ad networks to assess the cost-effectiveness of their campaigns and reach.

It's important to note that CPM is different from CPC (Cost Per Click), where advertisers pay for each click on their ads, or CPA (Cost Per Action), where advertisers pay for specific actions such as form submissions or purchases.