CPM

CPM (Cost per Mille) is a metric that shows how much each thousand potential customers who viewed the advertising material cost.

Another name for the metric is CPT or Cost per Thousand . This is one of the basic indicators in marketing, which is used to evaluate the cost-effectiveness and profitability of online advertising.

CPM is influenced by various factors, such as the cost of placing an ad and traffic to the site where it was placed. Calculated according to the formula:

For example, if the advertising budget was $5,000, and the number of contacts was 115,000. In this case, the cost of attracting each 1,000 contacts is approximately $43. How profitable this is depends on the type of business.

CPM is also the model by which online advertising is paid. In this case, the advertiser pays not for the fact of placement itself, but separately for each 1000 impressions. This model is actively used when placing ads on high-traffic resources, as well as in social networks. Clicks in this case are not paid, payment is charged exclusively for impressions.

Some sites allow you to provide not just impressions, but also take into account the target audience defined by the advertiser. For example, an advertisement will only be shown to women between the ages of 25 and 45 who live in a certain region.

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