For decades, all advertising has been sold using a metric called CPM, or cost per mille. In Latin, mille means thousand, so CPM is essentially saying that an advertisement is priced based upon how many thousands of people are exposed to a given advertisement. Imagine that the total cost of running a full-page ad in a magazine is $50,000. Now, imagine that the magazine has a circulation of 4 million people. $50,000 divided by 4 million is .0125. CPM is calculated by multiplying .0125 by 1,000. So in this example, the advertisement in question has a CPM of $12.50. The advertiser is paying $12.50
...more
