CPM (Cost per Mille) pricing model

Last Updated: 5 december 2024

CPM stands for Cost per Mille, also called cost per thousand (in Latin and French, mille means one thousand), and implies a payout for 1000 impressions. CPM pricing model is popular in display advertising (banners, branding, video, etc.) and widely used by independent platforms, teaser networks, some services, for example, *Facebook. Instagram, VK, etc. 

Advantages of CPM pricing model

• In CPM campaigns, no active actions are required from users — they do not have to deposit money as in CPA or register as in CPL. The affiliate receives payout regardless of whether target audience finds advertising material interesting. 
• In CPM advertising, there are usually many different targeting options available (demography, interests, occupation, and many others) that allows improving ad performance and saving budget.
• The cost is fixed in most cases making it possible to calculate conversion.

Other pricing models

• CPA (Cost Per Action) pricing model
• CPL (Cost Per Lead) pricing model
• RevShare pricing model
• CPI (Cost Per Install) pricing model