True or false? Sponsored ads are bought by impression (CPM).

Sponsored ads are typically bought on a cost-per-click (CPC) basis, not cost-per-impression (CPM). This means advertisers only pay when a potential customer clicks on their ad, rather than simply when the ad is displayed. While CPM is a common pricing model for display advertising where brand awareness is the primary goal, sponsored ads on platforms like Amazon are designed to drive direct sales and product discovery, making CPC a more performance-oriented and cost-effective model for advertisers. Therefore, the statement is false.