In online advertising, CPM is in relation to traffic that is eventually received on the web. It is done in the ratio when an online commercial company runs an advertising campaign.
This includes text-Links, banners, or sending mass e-mails. This is measured using the Cost per Mile metric which is equivalent to 1000 impressions.
So, the algorithm is as follows –
1 CPM = 1000 impressions
This is followed by the aim of selling products/services online. This is calculated on the basis of the number of views for which 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 instability. 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)