CPM (Cost Per Mille) and CPS (Cost Per Sale) are advertising metrics that determine how advertisers are charged based on different actions. CPM charges advertisers per thousand impressions, meaning they pay each time their ad is viewed 1,000 times, making it ideal for brand awareness campaigns. CPS, on the other hand, charges advertisers only when a sale is generated through their ad, aligning costs directly with successful conversions and focusing on performance.

What is CPM?

CPM (Cost Per Mille), or cost per thousand impressions, is a metric used in advertising to denote the price of 1,000 advertisement impressions on one webpage. If a website charges $5.00 CPM, that means an advertiser must pay $5.00 for every 1,000 impressions of its ad. It is widely used in media advertising where exposure or visibility is more important than the actual conversion.

Examples of CPM:

1. A banner ad on a news website that charges for every thousand views of the ad, regardless of user clicks.
2. Display ads on social media platforms where the primary goal is to increase brand awareness.

What is CPS?

CPS (Cost Per Sale), also known as cost per acquisition (CPA) or pay per sale (PPS), measures how much advertising money is spent on converting one customer. It’s particularly used in affiliate marketing where the advertiser only pays when the advertisement leads directly to a sale. This model aligns the interests of advertisers and publishers, as payments are only made when the desired outcome (a sale) is achieved.

Examples of CPS:

1. An online retailer paying a commission to an affiliate for each customer that purchases through the affiliate's link.
2. A software company using affiliate marketing to track and compensate for sales generated by third-party promoters.

Difference Between CPM and CPS

Basis	CPM	CPS
Definition	Cost paid for every 1,000 impressions of an ad.	Cost paid for each individual sale generated from an ad.
Objective	To increase brand awareness and ad visibility.	To drive sales and directly generate revenue.
Payment Trigger	Number of times the ad is displayed, regardless of customer engagement.	A completed sale directly attributed to the ad.
Risk	Lower risk for publishers as payment is based on ad views, not on conversion.	Higher risk for publishers; they earn only when a sale occurs.
Use Case	Used by brands looking to enhance their market visibility.	Used in performance-driven campaigns focused on conversions.
Examples	A company pays for ad space on a popular blog based on the number of impressions.	An affiliate receives payment only after a visitor clicks an ad and purchases a product.