Difference between CPM and RPM

There is often a tendency in online business to get confused CPM e RPM, in reality the meaning of the two terms is completely different. Here is the difference between CPM and RPM.

Difference between CPM and RPM

Difference between CPM and RPM

CPM is the acronym of Cost Per Mille (Cost per thousand impressions). Advertisers (for example Google Adsense) in the publication of CPM type ads, set the price to be charged to entrepreneurs for the publication of one thousand ads and pay when an ad is displayed.

So every time a CPM ad is posted on the web page, the advertiser will make a profit.

RPM is the acronym of Revenue per Thousand (Revenue per thousand impressions). It is the income of the publishers of a site (publisher) who display advertisements on their web pages. It is calculated by dividing the estimated earnings by the number of page views and multiplying the result by 1000. So: RPM Rate = (Estimated Earnings / Number of Page Views) * 1000.

The CTR (Click Through Rate), or the relationship between clicks and views of an advertisement. Put simply, it indicates how many people actually click on a banner / ad compared to the total of those who view it.

In conclusion:

  • An entrepreneur who has to buy advertising will have to take into account the CPM, which represents the unit cost of running the campaign.
  • A publisher site that wants to earn money from displaying advertisements will have to take into account the RPM, which represents its earnings after taxes and fees.
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