CPM

Cost Per Milli (Thousands)

The M in CPM stands for mille, Latin for thousand). CPM is a marketing term that denotes the price of 1,000 advertisement impressions on one webpage. If a website publisher charges $2.00 CPM, an advertiser must pay $2.00 for every 1,000 impressions of its ad.

The formula to calculate CPM is:

\(\text{CPM} = \left( \frac{\text{Total Cost of the Campaign}}{\text{Total Impressions}} \right) \times 1000\)

CPM is critical because it’s a standard advertising metric to measure an advertising campaign’s cost-effectiveness and efficiency. It allows advertisers to compare the cost of advertising on different platforms or media, regardless of the size of their audience or the amount of traffic. This helps marketers to allocate their advertising budgets more effectively, aiming for platforms where they can get the most visibility for their investment.

• Abbreviation: CPM

Additional Acronyms for CPM

• CPM - Critical Path Method