CPM (cost per thousand impressions) ads are a type of online advertising where advertisers pay for the number of times their ad is shown, regardless of whether or not someone clicks on the ad. CPM ads are commonly used in display advertising, where businesses want to increase brand awareness and reach a large audience.

Here’s how CPM ads work:

1. Ad creation: Businesses create ads in a platform such as Google Ads or Facebook Ads Manager. The ad includes a headline, description, images or videos, and a link to a landing page on the business’s website.

2. Bid management: In CPM advertising, businesses set a maximum bid for each ad placement they want to target. The bid represents the maximum amount they are willing to pay for every 1,000 impressions (views) of their ad. The actual cost per impression can vary based on competition from other advertisers and the quality of the ad.

3. Ad placement: CPM ads can appear in a variety of places, such as on websites, mobile apps, and social media platforms. Ad placement can be targeted based on factors such as location, device type, and audience demographics.

4. Measurement and optimization: CPM advertising platforms provide businesses with data and analytics to help them measure the performance of their ad campaigns and optimize them for better results. This includes metrics such as click-through rate (CTR), conversion rate, and cost per conversion.