CPM

Cost per mille (CPM) serves as a metric in digital advertising, denoting the cost an advertiser incurs for one thousand views or impressions of an ad. The term 'mille' derives from Latin, meaning thousand, which is why CPM is also known as cost-per-thousand. This pricing model is mainly utilized in campaigns aimed at enhancing brand awareness and visibility by reaching a broad audience.

The concept of CPM has its roots in traditional advertising mediums such as print and television. As advertising transitioned online, this model was adapted to facilitate pricing for digital ad placements. It has become a conventional method for advertisers to compensate for one thousand ad impressions.

Initially centered on impressions, the focus of CPM later expanded to include user engagement, paving the way for alternative pricing models like cost-per-click (CPC). The metric has also progressed with the introduction of concepts such as viewable CPM (vCPM), which ensures that ads are genuinely viewed by users.

CPM is a flexible pricing model applicable to various digital advertising goals. It is especially effective for campaigns where the main objective is to enhance visibility and reach, rather than to prompt immediate user actions. Advertisers utilize CPM to fulfill specific strategic aims.

While both CPM and CPC are prevalent pricing models in digital advertising, they cater to different strategic needs.