Either I misunderstand something (which is unlikely in this case), or his formula for CPM is wrong. Correct: CPM = Clickthrough Rate x Price Per Click x 1000

Either I misunderstand something (which is unlikely in this case), or his formula for CPM is wrong. Correct: CPM = Clickthrough Rate x Price Per Click x 1000 Example: If you have CTR or 2% and each click generates $0.40, you have CPM of 0.40 x 0.02 x 1000 = $8.