Cost Per Thousand Impressions (CPM)
The cost per mille (CPM) is a metric in marketing and advertising. It indicates the costs incurred to reach 1,000 people with an advertising message. CPM is used to compare the profitability of different advertising channels and campaigns. This metric plays an important role especially in reach campaigns. In digital marketing, CPM is also often referred to as CPM (cost per mille).
What does cost per thousand impressions mean?
The cost per mille shows the cost of 1,000 visual contacts for an advertisement. To calculate it, the total advertising costs are divided by the number of contacts achieved and then multiplied by 1,000.
This creates a comparable metric for different advertising media and campaigns. Companies can use it to better assess how efficiently reach is purchased.
Why is the CPM important?
Advertisers want to reach their target group as cost-efficiently as possible. The cost per mille helps compare different channels with one another. Especially in the field of display advertising and branding campaigns, CPM is one of the most important performance metrics. This allows budgets to be planned and distributed in a more targeted way. At the same time, the metric provides an initial indication of reach costs.
| Advertising costs | Contacts | CPM |
|---|---|---|
| 500 € | 100.000 | 5 € |
Typical areas of application
CPM is used in many forms of advertising:
- display advertising
- social media campaigns
- video ads
- online portals and news websites
- traditional media such as print, radio and television
Wherever reach is the focus, CPM is often used.
Strategic Classification
A low cost per mille does not automatically mean a successful campaign. What matters is also whether the people reached belong to the target group. Therefore, CPM should always be considered together with other metrics. These include, for example, click-through rate, conversion rate or engagement rate. Successful campaigns combine affordable reach with high relevance.
Conclusion
Reach causes costs that should be measurable and comparable. The cost per mille provides a simple and established metric for this. Those who analyze CPM together with other performance values can use advertising budgets more efficiently. This keeps the cost per mille an important benchmark for evaluating reach campaigns.
FAQ
What is the thousand-contact price, explained simply?
The cost per mille indicates the costs incurred to reach 1,000 people with advertising.
How do you calculate CPM?
The advertising costs are divided by the number of contacts and then multiplied by 1,000.
Why is the CPM important?
The advertising costs are divided by the number of contacts and then multiplied by 1,000.