The full form of CPM is Cost Per Mille, also commonly referred to as Cost Per Thousand.
CPM is a widely used marketing term that represents the cost an advertiser pays for one thousand views or impressions of an advertisement. The term "mille" is Latin for thousand. It's a crucial metric for evaluating the efficiency and effectiveness of online advertising campaigns.
Here's a breakdown:
- Cost: The total amount of money spent on an advertising campaign.
- Per: Meaning "for each."
- Mille (or Thousand): Denotes one thousand impressions.
Therefore, CPM allows advertisers to understand how much it costs them to show their ad to a thousand people. A lower CPM generally indicates a more efficient advertising campaign. It's important to note that CPM only measures impressions, not actions like clicks or conversions. Other metrics, such as Cost Per Click (CPC) and Cost Per Acquisition (CPA), are used to measure those.
