CPM stands for Cost Per Mille, which translates to the cost an advertiser pays per thousand impressions of their ad. As a publisher, you earn money by displaying these ads on your website, app, or platform and receiving a payment for every thousand ad impressions.
1. Ad Display: You display ads provided by an advertising network, such as Google AdSense, Adsterra, or others, on your platform.
2. Impressions: Each time an ad is viewed by a user, it counts as an impression. Advertisers pay a predetermined amount for every 1,000 impressions (mille in CPM).
3. Calculation: The CPM rate is usually set by the advertisers or the advertising network. It's the amount they're willing to pay for every 1,000 impressions of their ad.
Formula: CPM Earnings = (CPM rate / 1000) * Number of Impressions
4. Payment: At the end of the payment cycle (often monthly), the advertising network calculates your earnings based on the CPM rate and the number of impressions your ads received.
5. Payouts: The advertising network then pays you a portion of the CPM earnings, usually after deducting a commission or fee.
For example, if the CPM rate is $2.00 and you have 100,000 impressions, your earnings would be calculated as follows:
CPM Earnings = ($2.00 / 1000) * 100,000 = $200.00
You would earn $200.00 for those 100,000 impressions at a $2.00 CPM rate.
It's important to optimize your website or platform to attract more high-quality traffic and strategically place ads to increase impressions, ultimately boosting your CPM earnings.
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