How does CPM ads work?

Question

im planning to put cpm ads on my site but i just dont understand is that if i put 3 cpm ads on each page and a person browsed page to page for 3 times, so the ads showed 9 times for the same person... do i get 27 credit already?

Answer 1

Unfortunately, it's not quite that easy!

The term CPM means cost per thousand impressions and refers to the amount you are paid for showing 1000 ads. For example, suppose an ad campaign pays $1.00 CPM. You would earn one tenth of one cent each time a user views the ad for a total of a dollar after a thousand views.

In practice, you may not earn the full amount for every impression: if you are using an ad agency, they take a percentage of the income. Additionally, you may be paid for unique impressions—usually meaning you will only be paid the first time each unique visitor sees a particular ad. Be sure to check the fine print before making assumptions about how much money you'll earn.

Currently, $1 CPM is actually a pretty good rate for banner ads, and on a busy site you'll likely end up using ads that pay less to fill your inventory. Other ad formats, such as skyscrapers, pop-unders, and pop-ups, should pay higher rates.

I hope that helps!