CPM means Cost per Mille. It is a pricing model where the ad publisher (e.g Google or Facebook) charges you a flat rate for every 1,000 times your ad is displayed. That is why CPM is sometimes also called cost per thousand.
The CPM model heavily relies on the number of times the ad is shown; it does not matter whether a user clicks on the ad.
ADVANTAGES
- The lowest cost of advertising. Ideal if you are on a budget and need predictable pricing.
- It is easy to implement: Pay for 1,000 impressions, and forget.
- If the ad has the potential to generates high click rates, CPM is a low-cost solution.
- It is good when building brand awareness campaigns that do not really require the viewer to click.
DISADVANTAGES
- You are still billed even if the ad is shown to a person multiple times.
- It is a more quantitative benchmark rather than qualitative.
- It does not indicate acquisition.
- There is a high risk of impression fraud.
