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  • Caitlin Duffy

What is CPM?

Cost per thousand (CPM) is a metric used to measure the cost of online advertising. It is typically used for advertising that is sold on a cost-per-thousand impressions (CPM) basis. CPM is expressed as the cost of reaching 1,000 people with an ad and is calculated by dividing the cost of the ad campaign by the number of impressions in thousands (CPM = cost / (impressions/1000)).


CPM is a popular pricing model for online advertising as it allows advertisers to reach a large audience at a fixed cost. It is commonly used for display advertising, video advertising, and social media advertising.


CPM is a useful metric for advertisers to evaluate the cost-effectiveness of an ad campaign. It provides a benchmark for comparing the cost of reaching a specific audience across different channels or platforms. Advertisers can use CPM to determine the most cost-effective way to reach their target audience.


It's important to note that CPM should be used in conjunction with other metrics such as click-through rate and conversion rate to gain a more complete understanding of the performance of an ad campaign. A high CPM may indicate that the ad is reaching a large audience, but it does not necessarily mean that the ad is effectively engaging or converting users.


In summary, Cost per thousand (CPM) is a metric used to measure the cost of online advertising. It is typically used for advertising that is sold on a cost-per-thousand impressions (CPM) basis. CPM is a popular pricing model for online advertising as it allows advertisers to reach a large audience at a fixed cost and it's a useful metric for advertisers to evaluate the cost-effectiveness of an ad campaign. It should be used in conjunction with other metrics such as click-through rate and conversion rate to gain a more complete understanding of the performance of an ad campaign.

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