Cost Per Impression (CPM)
Recent Posts
Why consistency in your marketing agency is essential in your success? 5 Ways That Your Business Benefits From Local SEO Services Smart Ways to Promote Your Business on Twitter SEO core concepts every entrepreneur needs to know How to Use Instagram Stories: 6 Tips for Promoting Your eCommerce Brand 2 Feasible Ways Entrepreneurs Can Use Their Marketing Development Funds Practical Tips for Successful Facebook Ads Scaling Top 5 Shopify Apps to Boost Sales 5 Essential SEO Tools That Every Renowned SEO Professional Uses Benefits of Multi-Level Marketing: Why you Should Make this your Next Business Move 7 Useful Grammar and Proofreading Tools for Content Marketers Advanced Methodology for Competitive Analysis for Local SEOCost 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.