CPM is cost per mille and it represents the cost of 1,000 impressions of an ad.
people are using the CPM or PPM to measure the payout of displays.
It was once common to just post a banner for a period of time, then in order to calculate the cost effectives of the banner they started to count how many impressions where and how much you paid for them. Then they started to round them up by a thousand impressions so it will be called one unit.
The next generation of that counting was counting clicks, how many clicks would 1,000 impressions generate for me and from that point came the CPC.
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