Cost per thousand impressions (technically, “cost per mille”).
The CPM model refers to advertising bought on the basis of impression. This is in contrast to the various types of pay-for-performance advertising, whereby payment is only triggered by a mutually agreed upon activity (i.e. click-through, lead, sale).
The total price paid in a CPM deal is calculated by multiplying the CPM rate by the number of CPM units. For example, one million impressions at $10 CPM equals a $10,000 total price.
1,000,000 / 1,000 impressions = 1,000 units
1,000 units X $10 CPM = $10,000 total price
CPM Calculators – the calculators above, with more in-depth context.
CPM vs. CPC Calculator – useful for Facebook ads and other social ads.
Marketing Calculators – a growing collection of best-in-class calculators.
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Adweek (September 9, 2010)
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