What Is CPM?

Cost Per Mille explained in simple terms for publishers & advertisers

What Does CPM Mean?

CPM stands for Cost Per Mille, where “mille” means one thousand. In digital advertising, CPM refers to the amount an advertiser pays for 1,000 ad impressions.

CPM is one of the most popular pricing models used by ad networks, especially for display ads, popunders, push notifications, and brand awareness campaigns.

How CPM Works

In CPM advertising, advertisers are charged based on how many times their ad is shown, not how many clicks or conversions it receives.

Example:
If an advertiser pays a CPM of $2 and their ad gets 10,000 impressions:
Earnings = (10,000 ÷ 1,000) × $2 = $20

CPM Formula

The CPM calculation formula is very simple:

CPM = (Total Cost ÷ Total Impressions) × 1,000

Publishers often reverse this formula to calculate earnings from impressions.

Why CPM Is Popular With Publishers

  • Publishers earn money even without clicks
  • Works well with high-traffic websites
  • Ideal for popunder & push ad formats
  • Predictable revenue for large volumes

Advantages of CPM Advertising

  • Guaranteed earnings per impression
  • Best for brand awareness campaigns
  • No dependency on user actions
  • Scales well with traffic growth

Disadvantages of CPM

  • Lower earnings for low-traffic sites
  • Advertisers take more risk
  • Low-quality traffic reduces CPM rates

CPM vs CPC vs CPA

CPM differs from other models like CPC (Cost Per Click) and CPA (Cost Per Action):

  • CPM: Paid per 1,000 impressions
  • CPC: Paid per click
  • CPA: Paid per conversion

CPM is best when your site has large traffic volumes, while CPC and CPA are better for targeted or high-intent traffic.

How to Increase CPM Revenue

  • Focus on Tier-1 GEO traffic
  • Improve site speed and UX
  • Use premium ad placements
  • Block bot and low-quality traffic
  • Test multiple CPM ad networks

Final Thoughts

CPM remains one of the most reliable monetization models in 2026. For publishers with consistent traffic, CPM ad networks can generate stable and scalable revenue.

At Mavanads, we help publishers understand, compare, and choose the best CPM ad networks to maximize earnings.