CPM (Cost per mille)

CPM (cost per mille) is a metric used in digital advertising that represents the cost per thousand impressions. An impression, in turn, refers to a single instance of an advertisement being shown to a user.

It is an important metric for advertisers to consider when executing digital advertising campaigns because it provides insight into how much it costs to reach a large audience.

The “mille” in CPM refers to the Latin word for “thousand,” so the metric essentially means the cost per thousand impressions. For example, if an advertiser pays $10 CPM, it means that they will pay $10 for every 1,000 impressions of their ad. This metric is often used in display advertising, where ads are shown on websites and apps.

CPM is an important metric because it allows advertisers to estimate the cost of reaching a certain number of people with their ads. It is also helpful for comparing the cost-effectiveness of different advertising channels and campaigns. For example, if an advertiser is running ads on two different websites, and one has a CPM of $5 and the other has a CPM of $20, it means that the first one is more cost-effective.

In addition to being a useful metric for advertisers, CPM is also important for publishers and media companies who sell ad space on their websites or apps. It helps them determine the value of their advertising inventory and set prices for advertisers. Overall, CPM is a key metric in digital advertising that provides insights into the cost of reaching a large audience and is used by both advertisers and publishers to optimize their campaigns and pricing strategies.