What is CPM?

CPM is a way to see how much something costs for every 100 people who watch it.

Imagine you're having a big party and you want everyone to get a slice of pizza. If there are 100 kids at the party, and you spend $25 on pizza, that means each kid gets a piece that costs $0.25, right? That’s like CPM, it tells you how much money is spent for every 100 people who see something.

How CPM Works

Let's say your favorite cartoon runs on TV and you want to know if the show is popular or not. If 100 kids watch the show, and the channel spends $50 to make sure the show comes on, then the cost per 100 kids is $50.

This helps people who advertise, they can decide how much to pay for their ads based on how many people are watching. If more kids are watching, the cost might be higher, just like if your party has 200 kids and you need double the pizza!

CPM helps make advertising fairer and easier to understand.

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Examples

  1. A company pays $10 for every 1,000 times their ad is shown on a website.
  2. CPM helps advertisers know how much they're spending to reach people online.
  3. If you see an ad while scrolling through social media, it might cost the advertiser money per thousand views.

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