CPM, or Cost per Thousand, is a widely used metric in advertising that refers to the cost an advertiser pays for one thousand impressions or views of their advertisement. The term “M” in CPM stands for “mille,” which is the Latin word for “thousand.” This model is particularly common in digital advertising, where it is used to price web ads, such as banners, sponsored content, and email blasts. The CPM model allows advertisers to compare the cost-effectiveness of different marketing channels and campaigns by standardizing the cost based on the number of impressions. It is essential for advertisers to understand the CPM as it helps them to budget their advertising spend and estimate the reach of their campaign based on how much they are willing to invest. With CPM, the focus is on the number of times the ad is displayed, regardless of whether it leads to a click or conversion. This makes it a valuable metric for campaigns aimed at increasing brand awareness or delivering a specific message to a large audience.
