What is a CPM? Generate revenue through impressions

By Aliza P. Sherman

Opinions expressed by Entrepreneur contributors are their own.

So you want to sell advertising on your site? The basis forpricing your Web site's advertising space is the CPM. CPMstands for cost per thousand (the "M" is for theFrench word for "thousand," which is"millier"). When a visitor comes to your site anddownloads a page with a banner ad, that generates what's calleda "page view" or "impression."

You can set a price for each impression, meaning the number oftimes a visitor sees your advertiser's ads, but the commonmethod of selling impressions is in lumps of 1,000. So if you valueeach impression at 2 cents, then 1,000 impressions would cost $20(a fair price). If your visitors generate 5,000 impressions permonth, you can make $100 per month on advertising and so on.

Aliza Sherman is an entrepreneur and author of Cybergrrl:A Woman's Guide to the World Wide Web (Ballantine Books).She is currently working on her next book and new company.

Aliza Sherman is a web pioneer, e-entrepreneur and author of eight books, including

PowerTools for Women in Business.

Her work can be found at mediaegg.com.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Innovation

4 Ways Market Leaders Use Innovation to Foster Business Growth

Forward-thinkers constantly strive to diversify and streamline their products and services, turning novelties into commodities desired by many.

Business News

JPMorgan Shuts Down Internal Message Board Comments After Employees React to Return-to-Office Mandate

Employees were given the option to leave comments about the RTO mandate with their first and last names on display — and they did not hold back.

Business News

Your Old Apple AirPods Can Soon Act as an Over-the-Counter Hearing Aid, According to the FDA

The new software is compatible with the Apple AirPods Pro and accessible through iOS — for free and now FDA-authorized.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Leadership

From Elite Athletes to Tech Titans — Discover the Surprising $100-Million Habit That Leads to Extraordinary Success

Success comes from mastering focus, eliminating distractions and prioritizing what truly matters.

Business News

'Nothing More Powerful': How to Transform Companies From Within as an 'Intrapreneur,' According to a Microsoft Office and Yahoo! Shopping Cofounder

Elizabeth Funk wrote the first code for Yahoo! Shopping on her own, based on skills she acquired from an "HTML for Dummies" book.