For CPM related to internet marketing, see Cost per impression
Cost per mille (CPM), also called cost per thousand (CPT) (in Latin, French and Italian, mille means one thousand), is a commonly-used measurement in advertising. It is the cost an advertiser pays for one thousand views or impressions of an advertisement.[1] Radio, television, newspaper, magazine, out-of-home advertising, and online advertising can be purchased on the basis of exposing the ad to one thousand viewers or listeners. It is used in marketing as a benchmarking metric to calculate the relative cost of an advertising campaign or an ad message in a given medium.[2][3]
The "cost per thousand advertising impressions" metric (CPM) is calculated by dividing the cost of an advertising placement by the number of impressions (expressed in thousands) that it generates. CPM is useful for comparing the relative efficiency of various advertising opportunities or media and in evaluating the overall costs of advertising campaigns.[4]
For media without countable views, CPM reflects the cost per 1000 estimated views of the ad. This traditional form of measuring advertising cost can also be used in tandem with performance based models such as percentage of sale, or cost per acquisition (CPA).
^"What is CPM? - Definition, Information & Online Calculators". Retrieved 9 June 2018.
^American Marketing Association Dictionary. "Dictionary". Archived from the original on 2012-11-21. Retrieved 2012-11-29.. Retrieved 2012-11-28. The Marketing Accountability Standards Board (MASB) endorses this definition as part of its ongoing Common Language: Marketing Activities and Metrics Project Archived February 12, 2013, at the Wayback Machine.
^http://www.sempo.org Archived 2015-06-29 at the Wayback Machine. Glossary of Terms. Archived 2013-04-30 at the Wayback Machine Retrieved 2012-11-28.
^Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; David J. Reibstein (2010). Marketing Metrics: The Definitive Guide to Measuring Marketing Performance. Upper Saddle River, New Jersey: Pearson Education, Inc. ISBN 0-13-705829-2. The Marketing Accountability Standards Board (MASB) endorses the definitions, purposes, and constructs of classes of measures that appear in Marketing Metrics as part of its ongoing Common Language: Marketing Activities and Metrics Project Archived February 12, 2013, at the Wayback Machine.
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