Tausenderkontaktpreis (TKP)
The thousand-contact price (TKP) – in English, Cost per Mille (CPM) – is a common billing model in both online and traditional advertising. It refers to the cost incurred to generate 1,000 impressions with an ad. The CPM helps advertisers compare the cost-effectiveness and reach of different advertising formats or platforms.
The CPM is calculated using the following formula: (campaign cost ÷ number of impressions) × 1,000. The focus here is not on interaction or conversion, but solely on the visibility of an advertising message—regardless of whether a user clicks on it or responds.
A typical example: A company runs a display ad on a news portal and pays 5,000 euros for it. If the ad is displayed 1,000,000 times, the CPM is 5 euros. This means that every 1,000 impressions of the ad costs an average of 5 euros.
A key advantage of the CPM model lies in its predictability and reach orientation. It is particularly suitable for brands that want to increase awareness or reach a broad target audience—for example, as part of image campaigns, product launches, or awareness campaigns.
In online marketing, the CPM is often used for display, video, and social media ads. For companies looking to build brand presence or place visual ad content, the cost per mille offers an effective way to precisely calculate and strategically plan cost per reach.