Cost Per Impression (CPM)
Table Of Contents
Recent Posts5 Ways AI Will Shape the Graphic Design Industry in 2024 Finding The Top Long Island Marketing Companies How to Get Verified on Instagram How Do I Calculate Shipping Costs? How Do I Start a Dropshipping Business? Hiring A Marketing Company Can Change Your Business Outlook! Confirmed: Google To Stop Showing Ads On Right Side Of Desktop Search Results Worldwide How Do You Do Facebook Marketing? Benefits Of Marketing With Facebook Facebook Marketing Is A Winner How to Install the Facebook Pixel In Wordpress Key to Creating Loyal Customers
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.