Cost Per Impression (CPM)
Table Of Contents
Recent PostsHow To Make A GIF For Facebook Ads How To Sell Using Fear 5 Best Shopping Cart Software to start an eCommerce Business Copywriting Courses Smart Marketing Strategies for Small Businesses Facebook Advertising Tools to Amplify Your ROI Facebook Marketing Is A Winner Finding The Top Long Island Marketing Companies Increasing Benefits of Link-less Brand Mentions Crucial Tips If You Want to Start Using SEO for Your Business Creating Ephemeral Content: Utilizing FOMO in Marketing Avoid These 6 Common Facebook Marketing Mistakes
Cost per impression (CPM) is an agreed upon payment plan for advertisements based on the number of impressions an ad receives.
Typically, CPM is calculated based on 1000 impressions. Businesses are charged for each impression, or viewing. These ads do not charge when a user to click, such as with pay per click ads.
(Note: The “M” in CPM comes from the Roman numeral for 1000.)
Why is Cost Per Impression Important?
Cost per impression is important because it can be used to compare the overall cost effectiveness of different marketing vehicles. Ideally, the “vehicle” with the lowest CPM is typically the most efficient because if requires less money to reach 1000 users.
The CPM for each campaign helps to monitor the success of paid marketing campaigns and is a useful metric when calculating your ROI.