What is the difference between CPM and RPM for Online Advertisers
This video explains the difference between CPM and RPM for Online Advertisers.
CPM and RPM are two common pricing models used in online advertising.
CPM stands for "Cost per Mille" or "Cost per Thousand Impressions". It refers to the cost an advertiser pays for every 1,000 impressions (views) of their advertisement. An impression is counted each time an ad is displayed on a web page, regardless of whether someone clicks on it or not.
RPM, on the other hand, stands for "Revenue per Mille" or "Revenue per Thousand Impressions". It is a metric used by publishers (website owners) to measure the revenue they generate from displaying ads on their websites. RPM represents the amount of money a publisher earns for every 1,000 ad impressions served on their site.
In simple terms:
CPM is the cost paid by advertisers to publishers for every 1,000 ad impressions.
RPM is the revenue earned by publishers for every 1,000 ad impressions served on their website.
Higher CPM rates are generally better for publishers, as they earn more revenue per ad impression. Advertisers, on the other hand, prefer lower CPM rates to minimize their advertising costs.
Both CPM and RPM are widely used in the online advertising industry to price and measure the effectiveness of advertising campaigns and website monetization strategies.
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