What is CPM? Cost Per Mille
CPM stands for “Cost Per Mille” but the actual meaning is “Cost Per Thousands Impressions”. CPM is the dollar amount (or other currency) which you are paying for advertising per one thousand impressions for your advertising. For example: if you’re advertising cost is $5 CPM, it means you’re paying $5 for every 1,000 impressions of your ad.
CPM is one of the most common online advertising term used.
What does CPM Stand For? What Is CPM
CPM, or Cost Per Mille, is a term used in online advertising to refer to the cost an advertiser pays for one thousand impressions of their advertisement. An impression occurs each time an ad is displayed to a user, regardless of whether the ad is clicked or not. This pricing model is particularly useful for campaigns aimed at increasing brand visibility and awareness, as it allows advertisers to pay for the number of times their ad is potentially seen, rather than for direct engagement or conversions.
How do I calculate CPM?
Calculating CPM is easy, what you need to do is divide the total cost of advertising by the number of impressions of the ad and then multiply it by 1,000.
For example, your campaign cost was $500 and your ad impression count was 5,000 you need to divide 500 by 5,000 and multiply it by 1,000 which is $100 CPM.
What is a good CPM?
There is no good or bad CPM as a good CPM depends on the advertising vertical, the products or services advertised and the publisher website. As with most digital marketing metrics, you need these parameters to determine if a CPM is good or bad. Based on past performance data, the CPM can be estimated and evaluated according to the business needs.
To simplify, asking what is CPM? The answer is the cost per thousands impressions of any ad.