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Glossary · Ad metrics

CPM

Cost per mille — the price an advertiser pays per 1,000 impressions.

What is CPM?

CPM (cost per mille, i.e. per thousand) is a pricing model where advertisers pay a set rate for every 1,000 times their ad is shown.

It is the most common way display and contextual inventory is bought, and it underlies the eCPM publishers use to measure yield.

CPM in context

To understand CPM fully, it helps to know the concepts around it. eCPM, effective cost per mille — estimated revenue per 1,000 ad impressions. Ad Impression, a single instance of an ad being served to a user. Programmatic Advertising, automated buying and selling of ad inventory via software.

Together these describe how ad metrics works in practice for an AI app, and where CPM fits among them.

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