CPM stands for Cost Per Mille (thousand in Latin), which represents the cost an advertiser pays for one thousand advertisement impressions on a web page.

Formula: CPM = (Total Cost of Campaign / Number of Impressions) x 1000

Key points:

• Common pricing model for display advertising
• Useful for brand awareness campaigns
• Does not guarantee clicks or conversions
• Typically lower cost than CPC or CPA models

When to use: CPM is often preferred when the goal is to maximize visibility rather than direct response.