Cost per Thousand Impressions

September 12, 2013  |     |     |   0 Comment

Cost per Thousand Impressions or CPM in online advertising refers to the cost to an advertiser every time their ad is displayed to website visitors. That is, it is based on the number of “impressions” the ad makes on visitors. Rates are usually charged on a basis of 1000 impressions. 

As a website buyer, you need to understand what a website’s ad rates are that bring in revenues. Or you need to know how much the website is paying for advertising on other websites. For example, if CPM is $2, then for every 1000 displays to visitors, the advertiser pays a sum of $2.


Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.

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