costperthousandimpressions

Cost per thousand impressions, often abbreviated as CPM, is a pricing metric used in advertising, particularly in digital advertising. It represents the cost an advertiser pays for one thousand views or impressions of an advertisement. An impression is counted each time an advertisement is displayed on a screen, regardless of whether it was clicked or viewed by the user. CPM is a common way to measure the cost-effectiveness of advertising campaigns when the primary goal is brand awareness and reaching a broad audience.

To calculate CPM, the total cost of an advertising campaign is divided by the total number of impressions delivered, and then multiplied by 1,000. For example, if an advertiser spent $500 and received 100,000 impressions, the CPM would be ($500 / 100,000) * 1,000 = $5. This means the advertiser paid $5 for every 1,000 times their ad was shown.

CPM is particularly useful for comparing the efficiency of different advertising channels or placements. A lower CPM generally indicates a more cost-effective way to achieve a high volume of ad views. However, it's important to note that CPM only measures exposure and does not account for engagement or conversions. Therefore, it is best suited for campaigns focused on visibility and reaching a large number of people rather than direct response or sales. Advertisers often use CPM in conjunction with other metrics to evaluate the overall success of their advertising efforts.