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What is the Cost per Mille?

The Cost per Mille is a cost metric and KPIs in Mobile Marketing. It sets the cost of a user acquisition campaign in relation to the number of ad impressions that were shown to potential users. In other words, it tells marketers how much money they pay on average for 1,000 impressions.

CPM = Campaign Cost / Ad Impressions * 1,000

CPM as a Payout Model

The CPM is also a payout model. Advertisers and ad networks use it rather rarely when doing business with each other. As a CPM model causes costs even if users do not click the ad and install the promoted app, it is too risky for advertisers.

But in relations between publishers and ad networks, it is not unusual to use the CPM. Especially when for publishers who own a mobile website, this payout model is more beneficial because it guarantees them an income even if users do not click the ads.

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