Cost Per Mille (CPM)

What is Cost Per Mille (CPM)?

Cost Per Mille (CPM), also called cost per thousand (CPT) (in Latin mille means thousand), is a commonly used measurement in advertising. Radio, television, newspaper, magazine, out-of-home advertising, and online advertising can be purchased on the basis of showing the ad to one thousand viewers. 

How do you calculate CPM?

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.

Why is CPM useful to know?

CPM is useful in comparing the relative efficiency of different advertising opportunities or media and in evaluating the costs of overall campaigns. It is used in marketing as a benchmark to calculate the relative cost of an advertising campaign or an ad message in a given medium.

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