Cost per mille is
a regular term used in online advertisements and ad networks that simply means the amount you are paid as a publisher when you get 1000 views on your website.
It is alternatively called the cost per thousand and does not only apply to
websites only but even to traditional media like radio, TV and print advertisements.
Most Ad networks doing internet marketing will pay publisher based on a CPM
budget.
CPM Budget
A CPM budget is
the amount that an advertisement network is willing to pay publisher for every
1000 visitors who see a certain ad on their website.
Example:
If Kamau has a
website that receives traffic of 20,000 per day ….(meaning his website gets
20,000 visitors per day) and he advertises with an ad network with a CPM budget
of $0.5 it means for a day Kamau will make 20,000/ 1000 = 20 milles * 0.5 = $10
per day so he will make $300 per month.
Making Money
with Ads
The two important
factors that influence the amount of money you make with ads are:
The amount of traffic you receive – Kamau could double his income by increasing the number of
visitors to his website. If he doubled the traffic to 40,000 in a day his income
could rise to $600 per month.
The CPM budget – Different networks
offer different CPM budgets so if Kamau changed his network to one that pays $1
per Mille is income could double and total up to $ 600 per month.
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