Cost per mille (CPM)

Cost per Mille (CPM) is a billing model in online marketing, where advertisers pay per 1,000 impressions, meaning views of an ad. This model is often used for campaigns targeting reach and brand awareness, as it calculates costs based on the frequency of ad views, regardless of whether a user clicks on it.

An important aspect of CPM is the focus on visibility. It is ideal for advertisers who want to ensure their message reaches as many people as possible. Billing is based on 1,000 impressions, allowing for clear cost calculation for reach, and it is particularly common in display and video advertising.

Another advantage of CPM is predictability. Since the costs per 1,000 impressions are fixed, advertisers can precisely plan their budgets and expected reach. This makes CPM campaigns particularly appealing for brands aiming to reach a broad audience without directly focusing on clicks or conversions.

Example: A fashion brand could launch a CPM campaign in which the ad is played 100,000 times. If the CPM is 5 euros, the total cost of the campaign is 500 euros.

CPM is an effective model for campaigns that emphasize brand presence and visibility. It offers advertisers the opportunity to disseminate their messages on a large scale while keeping costs manageable.