CPM Meaning and
Definition
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CPM, also known as Cost Per Mille, is a marketing metric used to measure the cost effectiveness of an advertising campaign. CPM represents the advertising cost incurred by an advertiser for every one thousand impressions/views of an ad. It is commonly used in online advertising and media buying to determine the price of banner ads, sponsored content or any other form of online exposure.
The formula to calculate CPM is: CPM = (Total Cost / Total Impressions) x 1000. The total cost represents the amount spent by the advertiser on the campaign, while the total impressions refer to the number of times the ad was displayed to users, regardless of whether it was clicked or not.
CPM is the most straightforward way for advertisers to assess the cost of reaching their target audience. It allows them to compare different ad placements or campaigns by calculating the expense required to generate a thousand impressions for each option. This helps advertisers make data-driven decisions in terms of maximizing reach while minimizing expenditure.
While CPM is primarily used in online advertising, it can also be applied to other forms of media such as television or print, although it is less commonly used in those contexts. By using CPM as a benchmark for evaluating ad costs, advertisers can make more informed choices and optimize their marketing strategies to achieve their desired goals efficiently.
Common Misspellings for CPM
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