CPM stands for Cost Per Mille, which is a common pricing model used in online advertising. It refers to the amount of money an advertiser pays per thousand impressions or views of their advertisement.
The CPM model is typically used for display ads, such as banner ads and video ads, which are shown on websites and mobile apps. Advertisers pay a fixed amount per 1000 times their ad is displayed, regardless of whether it is clicked or not.
One of the benefits of the CPM model is that it allows advertisers to reach a large audience without having to invest a lot of money upfront. They only pay when their ad is displayed, which can help them control their budget more effectively. Additionally, the CPM model provides a way for advertisers to measure the effectiveness of their campaigns by tracking the number of impressions or views their ad receives.
However, there are also some drawbacks to the CPM model. For one, it does not provide any information about the effectiveness of the ad if it is not clicked on. This makes it difficult for advertisers to determine whether their campaign is successful or not. Additionally, the CPM model can be expensive for smaller businesses with limited budgets, as they may have to pay more than larger businesses just to get their ad seen by a similar number of people.
In summary, the CPM model is a popular pricing model used in online advertising that allows advertisers to reach a large audience without having to invest a lot of money upfront. While it has its benefits, it also has some drawbacks that should be considered before using it for an advertising campaign.
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