Cost Per Mille (CPM)

The cost of each thousand impressions of an ad in a display advertising campaign.

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Advertising Glossary

What Is Cost Per Mille?

Cost per Impression (CPM) is a crucial metric in display advertising, providing essential insights into the financial aspects of audience reach. In simple terms, CPM represents the cost incurred when displaying an advertisement to one thousand viewers.

The significance of CPM lies in its ability to illuminate the cost-effectiveness of exposing an ad to a sizable audience. It's akin to understanding the price tag associated with showcasing your ad to a specific number of people, offering advertisers a clear picture of their expenses in relation to potential exposure.

Practically, CPM serves as a valuable tool for advertisers to evaluate and compare various advertising opportunities. It aids in identifying the most cost-efficient methods to create an impact, especially when dealing with extensive campaigns or broad audience targeting.

Furthermore, CPM acts as a benchmark for assessing the overall campaign success. It provides an overview of the financial investment required to capture the attention of a substantial viewership. This insight proves invaluable to advertisers seeking to strike a balance between budget constraints and the desire to maximize visibility.

In summary, Cost per Impression (CPM) serves as an important metric in display advertising. Its straightforward calculation assists advertisers in understanding their costs for reaching a thousand individuals, facilitating budget allocation and campaign optimization. This metric underscores the crucial interplay between financial investment and audience reach, making it an essential tool for informed decision-making in the advertising.