One of the most important decisions you must make when buying digital advertising is how you will pay.
The acronym CPM stands for Cost Per Thousand Impressions. In order to judge an ad campaign's success, 1,000 impressions are the minimum requirement. Because random events can skew results even at lower levels of exposure.
This type of randomness can be weeded out once more ad impressions have been seen, and the performance can be measured. 1,000 ads are what makes online advertising a sort of fundamental unit.
Google counts a display advertisement as an impression if:
When a person watches your video for more than two seconds, Google counts it as an impression.
When you pay by CPM, the number of times people click on your ad has no impact on your rate. In CPM advertising, you will, however, be billed every time someone sees your ad, even the same person.
The formula to calculate CPM is:
CPM = 1000 * cost / impressions
One of the reversed equations may be more interesting to you:
Cost = CPM * impressions / 1000
impressions = 1000 * cost / CPM
Rather than calculating the result manually, you can use the above CPM calculator tool to get an estimate quickly.