Cost per thousand impressions (CPM)
Cost per thousand impressions, or CPM, is a common metric used in online advertising to measure the cost of reaching one thousand viewers with an advertisement. This metric is often used to compare the cost-effectiveness of different advertising campaigns and platforms.
CPM is calculated by dividing the total cost of an advertising campaign by the number of impressions (views) it receives, then multiplying by 1000. For example, if an advertiser spends $1000 on an ad campaign that receives 100,000 views, the CPM would be $10 ($1000 / 100,000 * 1000).
Advertisers use CPM to determine the cost of reaching their target audience and to compare the efficiency of different advertising channels. Platforms such as Google Ads and Facebook Ads use CPM as a pricing model for advertisers to bid on ad placements.
Overall, CPM is an important metric for advertisers to analyze the cost-effectiveness of their advertising campaigns and make informed decisions on where to allocate their advertising budget.
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