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Cost Per Mille (CPM)

What is Cost Per Mille (CPM)?

Cost per Mille, also called Cost Per Thousand, is a marketing term used to refer to the price of 1,000 ad impressions on a website. If a website publisher charges €2.00 CPM, an advertiser must pay €2.00 for every 1,000 impressions of their ad. The “M” in CPM stands for the word “Mille”, Latin for “thousands”.

For media without countable impressions, the CPM reflects the cost per 1000 estimated impressions of the ad. This traditional form of advertising cost measurement can also be used in conjunction with performance-based models.

Meaning

  • Comparison: the CPM metric is intended to compare the cost of advertising campaigns in and between different media. A typical advertising campaign might attempt to reach potential consumers in multiple locations and across multiple media. Using the CPM metric, marketers can make cost comparisons
  • between these media both in the planning phase and during review of previous campaigns.

  • Estimating Success The Cost Per Mille (CPM) is calculated by dividing the advertising campaign cost by the number of impressions delivered by each part of the campaign. CPM is thus the price of a media campaign in relation to its success in generating impressions.

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