CPM (Cost-Per-Mile) advertising is a model when a price is stated for a thousand of impressions of an ad, i. e. the banner should be shown to a thousand of Internet users.
*Mile – a thousand from Latin.
How it works
This model is entirely based on number of impressions on a specific page. No matter which type of ad was used, everything is focused on displays and not on clicks or downloads, like CPC or CPI respectively.
Advertising campaigns of these type certainly need regular traffic to start earning money. For example, you have a website with a CPM banner ad where you get money after 1 000 displays. There are 2 variants for an advertiser to pay for it: flat rate or bid rate. However, the CPM formula is the same for both cases:
CPM = expenses / amount of displays х 1000
When and how to use
As we have said before, in this methods conversions is not a point of interest. Why use it? The answer is simple, when you release a new service or start a new campaign – the more people will know about you – the better. It is important here to use something creative, grabbing and hooking to attract people’s attention. They will recollect you later for a joke in your ad, for piece of advice etc. People like being taken care about and are more likely to purchase at your company in this case.