What is CPM and CPC?
The cost per 1000 impressions, also called CPM is a commonly used number in advertising programmes. Advertisers running CPM ads set their desired price per 1000 ads served, select the specific ad placements on which to show their ads, and pay each time their ad appears. CPM (cost per 1000 impressions, also known as pay-per-impression) represents your earnings for every 1000 impressions that you receive. Rather, it is calculated by dividing your earnings by number of page impressions i.e. the exact number of times a visitor views your site/blog, then multiplying by 1000. For example, if you earned Rs0.25 from 25 page impressions, then your CPM would equal (Rs0.25/25)*1000 or Rs10.00. The cost-per-click (CPC) is the amount you pay each time a user clicks on your ad. For example, consider a campaign where payment is based on impressions, not clicks. Impressions are sold for Rs20 CPM with a click-through rate (CTR) of 2%. 1000 impressions*2% CTR = 20 click-throughs Rs20 CPM / 20 click-thro
