CPM is a type of Internet Marketing where the advertiser pays based on how many times an ad is seen regardless of whether or not the viewer takes any further action. CPM stands for cost per 1,000 views. The “M” is derived from the Latin word “mille” which translates to “thousand.”
To calculate a CPM, you take the cost of the ad and multiply it by 1,000 and then divide that by the total audience for the website. (ie. A site that charges $10,000 per banner and has a total audience of 500,000 has a CPM of $20.)