Cost Per Mille (CPM)
Overview
Cost Per Mille (CPM) is a marketing term used to denote the cost of 1,000 advertisement impressions on a web page.
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Cost Per Mille (CPM) is a crucial metric in the advertising industry that allows marketers to understand how much they need to pay for every 1,000 impressions of their advertisement. An 'impression' refers to a single instance of an ad being displayed to a user. CPM is widely used in online advertising, particularly in display and video ads, to measure the cost-effectiveness and reach of marketing campaigns.
By calculating CPM, advertisers can compare the expenses of different advertising channels and formats to determine where they are getting the most visibility for their budget. For example, if a website charges $5 CPM, it means an advertiser needs to pay $5 for every 1,000 times an ad is viewed. This metric is essential for budgeting and optimizing ad spend to maximize exposure and return on investment.