What's cost-per-click (CPC) and cost-per-thousand-impressions (CPM)?
CPC stands for Cost per Click, the amount you make for every click made on an advert. CTR stands for Click Through Rate that is, the ratio(percentage) of users who have clicked on an advert to the total number of users who have viewed the advert.
CPM on the other hand is the Cost per a thousand Impression(CPI). It's usually the amount you can earn for a thousand users who have viewed an advert.
Ad Impression is the display of an advert to a user while viewing a page. A single page may have several adverts. Depending on the number of ad request made, ad impression may be higher than your page-views.
Again, it does not necessarily mean that if you have 3 adverts in a page with 5000 page-views, your ad impression will be 15000. There are many metrics that advertisers use to determine if an ad impression can is considered. Example of a consideration is the number of refreshes made to a page, number of ad-requests etc.
To get CPM:
Cost per impression = Advertising cost ($ or KSH) / Number of Impressions.
Find out more about online advertising terms in the video below.
