CPM (Cost Per Thousand)
Topic Overview[edit | edit source]
CPM, or Cost Per Thousand, is a commonly used term in the digital advertising industry. It refers to the cost an advertiser pays for one thousand views or impressions of an advertisement. The 'M' in CPM stands for the Roman numeral for 1000. This pricing model is used to quantify the value and cost of advertising campaigns and is applicable to various types of digital ads such as display, video, social media, and more.
Usage Types[edit | edit source]
Advertising[edit | edit source]
CPM is a standard measure in advertising. It's often used by marketers to calculate the cost of an advertisement based on the number of impressions, making it an effective method of comparing the cost-effectiveness of different advertising strategies and platforms.
Media Planning[edit | edit source]
In media planning, CPM is used to help plan the budget for advertising campaigns. By calculating the CPM, marketers can estimate the cost of reaching their target audience and optimize their budget allocation.
Analytics[edit | edit source]
CPM is a valuable metric in analytics. It can help businesses measure the success of their advertising campaigns. By comparing the CPM of different campaigns, businesses can identify which advertisements are most cost-effective and adjust their advertising strategy accordingly.