What is Cost per thousand (CPM)?

Cost per thousand (CPM) - a commonly used metric in advertising that refers to the cost an advertiser pays for one thousand views or impressions of their advertisement. CPM is often used in digital advertising and is calculated by dividing the total cost of an ad campaign by the number of impressions, then multiplying that result by 1000.

CPM can be a useful tool for advertisers as it helps them understand the potential reach of their ad campaigns and allows them to compare the costs of different advertising channels. However, it's important to note that CPM only measures how many times an ad was displayed, not how many people actually engaged with it or took action as a result.

In addition to digital advertising, CPM can also be applied to other forms of media such as television and radio. For example, if a television commercial costs $10,000 to air during prime time and reaches 500,000 viewers, its CPM would be $20 ($10,000 divided by 500).