CPM

CPM (Cost Per Mille) is a payment model for 1,000 ad displays. It is a case where reach is more important than engagement. Unlike CPV, payment is not based on clicks or actions, but on the fact that a banner, teaser, or video was displayed. In arbitrage, it is most often used in pop, push, and teaser networks. It can also be helpful if you are launching awareness campaigns or testing creatives.

How to correctly calculate CPM?

Calculating the cost is very simple, as there is a standard formula:

CPM = (Total cost ÷ Number of displays) × 1000

For example, if you spend 50 USD, you get 10,000 displays; your CPM is 5 USD. That is, the price of 1,000 displays is 5 USD.

It is a key indicator for assessing the value of reach. But it is important to remember that this method alone does not indicate the quality of traffic; it must be evaluated in conjunction with CTR and conversion.

When is it profitable to work with the CPM model?

It will be a profitable solution if you have creative content with high conversion rates and good CTR. As a result, the offer will receive cheap clicks. Choose this method when the goal is the reach and scale, especially in branding offers; for example, if you need to test creative content on a large volume of traffic.

CPM is common in e-commerce, iGaming, mobile applications, and media advertising. A significant advantage is control ability for affiliates, as they can set the rate and run traffic at the desired price.

What factors affect the price per thousand?

The following factors affect CPM success:

• Geo: In Tier-1, the cost can be 10 times higher than in Tier-3.
• Format and placement: full-screen pop-ups will be more expensive than push notifications.
• Auction competition: the more advertisers there are, the higher the bid.
• Creative relevance: CTR and banner quality also affect the cost.
• Time of day and seasonality: the scale rises in the evening and on holidays.

Remember that without regular analytics, a CPM advertising campaign will not deliver results. Therefore, track CTR, engagement, and post-view conversions to identify and turn off weak links, and scale effective ones promptly—the more accurate the targeting and the stronger the creative, the lower the final price per result.