On: 5 things that make your social network monetize like crap

[enonko]

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.