CPM (Cost Per Mille) refers to the cost an advertiser pays for one thousand views or impressions of an advertisement, used to measure the cost effectiveness of a campaign.

Definition

CPM, or Cost Per Mille, is a commonly used term in digital advertising. It refers to the cost an advertiser pays for one thousand views or impressions of an advertisement. The term 'mille' is derived from Latin, meaning 'thousand'. This metric is used by marketers to measure the cost effectiveness and efficiency of a campaign.

Usage and Context

CPM is commonly used in advertising to price ad spaces. Websites, for example, will charge a certain rate per 1,000 impressions of an ad. The CPM rate can vary depending on the platform, the specificity of the target audience, and other factors. To calculate the CPM, you divide the total cost of the campaign by the total number of impressions, then multiply the result by 1,000.

FAQ

What is the difference between CPM and CPC?

While CPM refers to the cost per 1,000 impressions, CPC (Cost Per Click) refers to the price paid by an advertiser for each click on their ad.

How can I lower my CPM?

There are several strategies to lower your CPM. Some of these strategies include narrowing your target audience, improving your ad quality, and testing different ad placements.

Related Software

There are several software that can help advertisers manage and optimize their CPM rates. These include Google AdWords, Facebook Ads Manager, and AdRoll.

Benefits

CPM is a beneficial metric for advertisers as it allows them to measure the cost effectiveness of their campaigns. It also allows for easy comparison between different advertising platforms and campaigns.

Conclusion

In conclusion, CPM is an essential metric in digital advertising. It allows advertisers to measure the cost effectiveness of their campaigns and to optimize their advertising strategies.

Related Terms

CPA (Cost Per Acquisition)

CPA, or Cost Per Acquisition, is a financial metric in digital marketing that measures the cost to acquire a paying customer on a campaign level.

CPC (Cost Per Click)

CPC (Cost Per Click) is an advertising metric that represents the amount paid by an advertiser for each click on their ad.

CPaaS (Communications Platform as a Service)

CPaaS is a cloud-based platform that allows developers to add real-time communication features into their applications without needing to build backend infrastructure.

CTR (Click Through Rate)

CTR (Click Through Rate) is a metric used in digital marketing to measure the effectiveness of an online advertising campaign.

TCPA (Telephone Consumer Protection Act)

The TCPA is a US federal law that restricts unsolicited marketing calls, text messages, and faxes, protecting consumer privacy and setting guidelines for businesses.
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