Cost Per Thousand
Online Advertising
Cost Per Thousand
Effective Cost Per Mille
Cost per Thousand (known as CPM) 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.
It is calculated by:
total cost * 1000 / total audience
For example, 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.
The "M" in CPM derives from the Latin mille for "thousand."
In the
United Kingdom, Cost Per Thousand is expressed as CPT rather than CPM.
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