Cost Per Thousand (CPM)

Cost per thousand (CPM) is a marketing term used to describe the cost of reaching 1,000 people with an advertisement. It is calculated by dividing the total cost of the campaign by the number of impressions (i.e., the number of times the ad was shown).

CPM is often used to compare the cost-effectiveness of different advertising channels. For example, an advertiser might compare the CPM for advertising on a website to the CPM for advertising on a television commercial.

CPM is also used to set a budget for an advertising campaign. For example, an advertiser might decide to spend $10,000 on a campaign and then calculate the CPM based on the number of impressions they want to achieve.

It is important to note that CPM is not the same as cost per click (CPC). CPC is a measure of the cost of each click on an advertisement, while CPM is a measure of the cost of reaching a certain number of people.

CPM is often used in online advertising, where it is a common way to measure the cost of advertising on websites, search engines, and social media platforms.

Here are some additional details about CPM:

• CPM is typically used for advertising campaigns that target a large audience.
• CPM is often used for branding campaigns, as it can help to build awareness of a brand among a large number of people.
• CPM can be a good way to compare the cost-effectiveness of different advertising channels.
• CPM is not the same as cost per click (CPC). CPC is a measure of the cost of each click on an advertisement, while CPM is a measure of the cost of reaching a certain number of people.

Overall, CPM is a useful metric for measuring the cost of advertising campaigns. It can be used to compare the cost-effectiveness of different advertising channels and to set a budget for an advertising campaign.