In online Advertising, CPM is in relation to traffic that is eventually recievedon the web. It is done in the ratio when a online commercial company runs a advertising campaign.
This includes text-Links, banners or sending mass e-mails. This is measured using Cost per Mile mtric which is equivalent to 1000 impressions.
So, the algorithm is as follows –
1 CPM = 1000 impressions
This is followed in the aim of selling products/services online. This is calculated on the basis of number of views for which is a tracker is placed and organized accordingly.
However, this is not a standard form of payment and most webmasters do not prefer the same due to its unstability. Online advertisements are common these days with the following major themes –
a) CPA (Cost per Action)
b) CPC (Cost per Click)
c) CPT (Cost per Time)