Measurement

Cost Per Mille (CPM) — Definition & Explanation

The cost an advertiser pays per 1,000 ad impressions. CPM is the standard pricing metric in programmatic display and video advertising. For publishers, eCPM (effective CPM) measures revenue earned per 1,000 impressions across all demand sources.

How Cost Per Mille (CPM) Works

CPM = (Total Cost / Impressions) × 1,000. In programmatic auctions, CPM bids compete in real-time. The winning bid determines the CPM a publisher receives, minus the SSP's revenue share.

Why Cost Per Mille (CPM) Matters for Publishers

CPM is the core metric for publisher revenue optimization. Every aspect of Stellor Media's platform — dynamic floors, header bidding, demand partner management — is designed to increase publisher CPMs.

Frequently Asked Questions

What is a good CPM for display advertising?

CPMs vary by traffic geography, content category, and audience quality. US Tier 1 display averages $1-5, with premium placements reaching $10-30+ and video commanding $15-50.

What is the difference between CPM and eCPM?

CPM is what an individual buyer pays. eCPM (effective CPM) is the blended revenue rate across all demand sources and deal types, including unfilled impressions.

How does Stellor Media maximize publisher CPMs?

Through competitive header bidding, 50+ demand partners, dynamic floor pricing, and viewability optimization — publishers typically see a 40% average RPM lift with Stellor.

Related Terms

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