CPM (cost per mille)

CPM (cost per mille) - Also known as Cost per Thousand. Online advertising can be purchased on the basis of what it costs to show the ad one thousand times (CPM).

Note that this is often understood somewhat differently in interactive advertising than for other media. CPM in other media is often understood to be the cost of showing an ad to 1000 people. CPM in interactive advertising is generally understood to mean showing an ad 1000 times. Unless "frequency capping" is applied to online campaigns, an ad that shows 1000 times may not reach 1000 unique viewers as usually viewers will see an ad more than once.

Online advertising rate-cards are often quoted using CPM rates. So a CPM of $50 would equate to a cost of 5 cents per impression served of that ad.

CPM is used in marketing as a benchmark to calculate the relative cost of an advertising campaign or an ad message in a given medium. Rather than an absolute cost, CPM estimates the cost per 1000 views of the ad. (Wikipedia definition)


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