What does CPM mean in clipping?

CPM is an advertising term that clipping borrowed. It means the price of 1,000 views. The M is the Roman numeral for a thousand.

In a clipping campaign the CPM is the rate you are paid. A campaign that says $1.50 per 1,000 views has a $1.50 CPM.

The formula

earnings = views ÷ 1,000 × CPM

Some examples at a $1.50 CPM:

• 2,000 views earns $3.00
• 25,000 views earns $37.50
• 400,000 views earns $600.00

The three things that change the formula

The cap. Almost every campaign has a maximum per clip. If the cap is $250, the 400,000 view clip above earns $250, not $600. Brands set caps so one viral clip does not drain the whole pool. Clippers who hit caps often are the ones brands invite to private campaigns.

The minimum payout. Some campaigns set a dollar floor a clip has to earn before it goes to review, for example $1, which at a $1 CPM is 1,000 views. Below the floor nothing is committed. This filters out clips that never got shown.

The pool. The campaign's budget is a hard ceiling for everyone. If the pool has $100 left and five clips are climbing, that $100 is all that is left to share. Once it is spent the campaign closes.

Why CPM is a fair way to pay

A flat fee pays the same whether the clip gets 300 views or 3 million. CPM pays for what actually happened. The clipper who found the moment that hit gets paid for it, and the brand only pays for reach it actually received.

It also makes campaigns comparable. If one brand pays $0.80 and another pays $2.00 for the same kind of content, you can see that on the card and choose.

What a normal CPM looks like

Rates on The Creators Club are set by each brand and sit in the range of a fraction of a dollar up to a few dollars per 1,000 views. A brand that wants the best clippers pays above what the others in its niche pay, because clippers look at the board every day. The rate is visible on every card, so you never guess.

If you are a brand choosing a rate, set your rate and caps walks through the numbers.