CPM |
Cost per Thousand |
CPM stands for Cost Per Thousand (or Cost Per Mile). It is a financial metric that is used to measure the cost of an advertisement or marketing campaign. |
CPM is commonly used in the digital advertising industry, where it is used to measure the cost of displaying an ad on a website or other digital platform. It is also used in traditional media, such as television, radio, and print, to measure the cost of advertising space or time. |
How to Calculate: |
It is calculated by dividing the Total Cost (TC) of the Campaign by the Number of Impressions (Views) the campaign receives, and then multiplying that number by 1,000. |
For example, if an advertising campaign costs $1,000 and receives 100,000 impressions, its CPM would be $10 ($1,000 / 100,000 * 1,000). CPM is often used to compare the cost effectiveness of different advertising campaigns or to track the cost performance of a single campaign over time. |