CPM (Cost Per Mille) is a standard advertising metric that refers to the cost of 1,000 ad impressions. It's one of the most common pricing models used in digital advertising, especially in display and video ads.
When we talk about CPM rates, we're referring to how much advertisers are willing to pay for every 1,000 times their ad is shown to users.
For example:
- If the CPM rate is $2.50, it means the advertiser pays $2.50 for every 1,000 impressions.
- If your website or app delivers 100,000 impressions at a $2.50 CPM, the gross ad revenue would be $250.
What affects CPM rates?
Several factors influence CPM rates:
- Geo-location of your traffic (Tier 1 countries like the US, UK, or Germany usually pay more)
- Device type (mobile vs desktop)
- Ad format (pop-under, native, banner, interstitial, video)
- Traffic quality and engagement
- Industry niche or vertical (finance, adult, gaming, etc.)
- Seasonality and competition (CPMs rise during Q4 due to holiday advertising)
CPM rates can fluctuate daily based on market demand, bid competition, and targeting criteria.
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