Cost per mille
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- ECPM redirects here. It is also short for European Christian Political Movement.
Cost per mille (CPM), also called cost ‰ and 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 what it costs to show the ad to one thousand viewers (CPM). 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. Rather than an absolute cost, CPM estimates the cost per 1000 views of the ad.
An example of computing the CPM:
- Total cost for running the ad is $15,000.
- The total audience is 2,400,000 people.
- CPM is calculated as CPM = $15,000/(2,400,000/1000) = $6.25
[edit] Examples
- In online advertising, if a website sells banner ads for a $20 CPM, that means it costs $20 to show the banner on 1000 page views.
- While the Super Bowl has the highest per-spot ad cost in the United States, it also has the most television viewers annually. Consequently, its CPM may be comparable to a less expensive spot aired during standard programming.
[edit] Effective cost per mille
Effective cost per mille (eCPM) is used to measure the effectiveness of a publisher's inventory being sold (by the publisher) via a CPA, CPC, or CPT basis. In other words, the eCPM tells the publisher what they would have received if they sold the advertising inventory on a CPM basis (instead of a CPA, CPC, or CPT basis).
[edit] See also
- CTR - Click-through rate
- CPI - Cost Per Impression
- PPC - Pay per click
- CPA - Cost Per Action or Acquisition
- Internet marketing
- CPC - Cost Per Click
- eCPA - effective Cost Per Action
- Compensation methods
