It has been suggested that this article or section be merged with Cost Per Impression . (Discuss)

Cost per mille (CPM), also called cost ‰ and cost per thousand (CPT), is a commonly used measurement in advertising. In Italian mille means thousand, therefore, CPM means cost per thousand. Radio, television, newspaper, magazine and online advertising can be purchased on the basis of what it costs to show the ad to one thousand viewers (CPM). It is used in marketing as a benchmark to calculate the relative cost of an advertising campaign or an ad message in a given medium. Rather than an absolute cost, CPM estimates the cost per 1000 views of the ad. Wikipedia does not have an article with this exact name. ... Cost Per Impression is a phrase often used in online advertising and marketing related to web traffic. ... A permille or per mille is a tenth of a percent or one part per thousand. ... Commercialism redirects here. ... This article or section does not adequately cite its references or sources. ... Online advertising is advertising on the Internet. ... Wikibooks has more about this subject: Marketing Look up marketing in Wiktionary, the free dictionary. ... A benchmark is a point of reference for a measurement. ... Commercialism redirects here. ... This article does not cite any references or sources. ...

Calculation

An example of computing the CPM:

1. Total cost for running the ad is $15,000.
2. The total audience is 2,400,000 people.
3. The CPM is computed as CPM = ($15,000 x 1000)/2,400,000 = $6.25
4. CPM can also be calculated as CPM = $15,000/(2,400,000/1000) = $6.25

The second equation is easier for solving for unknown Cost of Unit when you know Audience and desired CPM.

Examples

• In online advertising, if a website sells banner ads for a $20 CPM, that means it costs $20 to show the banner on 1000 page views.
• While the Super Bowl has the highest per-spot ad cost in the United States, it also has the most television viewers annually. Consequently, its CPM may be comparable to a less expensive spot aired during standard programming. (But the truth is that Super Bowl prices have been as much as double a regular prime-time ad, because advertisers are willing to pay to be part of 'the event' that is the Super Bowl broadcast.)

The winning Super Bowl team receives the Vince Lombardi Trophy. ...

Effective cost per mille

Effective cost per mille (eCPM) is used to measure the effectiveness of a publisher's inventory being sold (by the publisher) via a CPA, CPC, or CPT basis. In other words, the eCPM tells the publisher what they would have received if they sold the advertising inventory on a CPM basis (instead of a CPA, CPC, or CPT basis). Cost Per Action or CPA (as it is often initialized to) is a phrase often used in online advertising and online marketing circles. ... Cost Per Click or CPC (as it is often initialized to) is a phrase often used in online advertising and online marketing circles. ... Cost Per Action or CPA (as it is often initialized to) is a phrase often used in online advertising and online marketing circles. ... Cost Per Click or CPC (as it is often initialized to) is a phrase often used in online advertising and online marketing circles. ...

See also

• CTR - Click-through rate
• eCPM - Effective Cost Per Mille
• CPI - Cost Per Impression
• PPC - Pay per click
• CPA - Cost Per Action
• Internet marketing
• CPC - Cost Per Click
• eCPA - effective Cost Per Action
• Compensation methods