Definition:

CPM, stands for cost per mille, with the Latin and old French word ‘mille’. The amount an advertiser pays for every 1,000 ad impressions

Example:

Let’s say a company wants to advertise its new product on a website, and the website charges $2 CPM. If the ad is shown to 10,000 visitors, the company would pay $20 to the website.

In this example, the CPM is $2, which means the company pays $2 for every 1,000 ad impressions. Since the ad was shown to 10,000 visitors, the total number of ad impressions is 10,000 / 1,000 = 10.

Therefore, the total cost of the ad campaign is 10 * $2 = $20.