{"id":2098,"date":"2023-11-29T13:52:02","date_gmt":"2023-11-29T13:52:02","guid":{"rendered":"https:\/\/productreview.tools\/?p=2098"},"modified":"2023-11-29T13:52:04","modified_gmt":"2023-11-29T13:52:04","slug":"cost-per-thousand-cpm","status":"publish","type":"post","link":"https:\/\/productreview.tools\/blog\/cost-per-thousand-cpm\/","title":{"rendered":"What is Cost Per Thousand (CPM) in Digital Marketing"},"content":{"rendered":"\n
Cost Per Thousand, commonly known by its acronym CPM (where ‘Mille’ stands for thousand in Latin), is a fundamental concept in digital marketing and online advertising. It refers to the cost an advertiser pays for every thousand impressions (views) of their advertisement. <\/p>\n\n\n\n
This model is prevalent in the realm of internet advertising, where it serves as a cornerstone for understanding and managing the economics of digital ad campaigns.<\/p>\n\n\n\n
CPM is a metric that quantifies the cost of having an advertisement displayed a thousand times on a website or a digital platform. It is a method used to price ad banners, sponsored social media posts, and other digital ad formats. This pricing model is advantageous for advertisers as it allows them to gauge the cost-effectiveness of their advertising expenditures based on the visibility of their ads.<\/p>\n\n\n\n
The calculation of CPM is straightforward yet critical for budgeting and strategy in advertising. To calculate CPM, divide the total cost of the advertising campaign by the total number of impressions it generates. Then, multiply this result by 1000. This formula provides advertisers with a clear and quantifiable measure of how much they are paying for the visibility of their advertisements.<\/p>\n\n\n\n
Example<\/em>: If an advertising campaign costs $200 and generates 50,000 impressions, the CPM would be calculated as follows: <\/p>\n\n\n\n