CPM

Cost Per Mille (CPM) measures the cost of 1,000 ad impressions. Advertisers use it to determine how much they pay to appear 1,000 times for their ad, making it a standard metric in digital and media advertising.

What is CPM?

CPM Cost Per Mille is a standard advertising metric. In digital marketing, it refers to the cost of showing an ad 1,000 times to the target audience. Advertisers use this metric to evaluate the cost-effectiveness of display ads, video ads, and other paid media campaigns.

What is CPM in Advertising?

You can define CPM as:

Whenever an ad is displayed to a user, it counts as an “impression.” Advertisers favor CPM because it measures the cost of reaching a large audience.

Benefits of Cost Per Mille (CPM)

CPM benefits advertisers by providing predictable costs for brand visibility campaigns.

Advertisers can easily use the straightforward CPM formula to track and analyze ad performance.

This model supports display ads, video ads, and other formats designed to increase brand recognition rather than drive immediate clicks or conversions.

Advertisers also rely on CPM to compare the cost-efficiency of campaigns across various advertising platforms.

CPM Vs. CPC Vs. CPA

CPM focuses on the cost of 1,000 ad impressions, making it ideal for brand awareness campaigns targeting a large audience. In contrast, CPC charges advertisers only when users click on the ad, which suits campaigns that drive traffic or actions.

CPA charges advertisers only when users complete specific actions, such as making a purchase or signing up, making it the preferred choice for conversion-focused campaigns.