CPM comes up a lot when we talk about Digital Marketing, but what is it? What does it mean, and why is it important?
Let’s first define CPM. What is Cost Per Mille? The technical definition of CPM is best summed up by saying:
Also called Cost Per Thousand this is the price that advertisers pay for a thousand impressions or views of an ad. – The Internet
Ok, that is a good place to start but if you really need to understand this term and use it to your advantage when you encounter it in the “wild” we are going to need to do a deeper dive. Digital Marketing has a lot of jargon to navigate and it can mean different things depending on where it is being used and what your goals are. For example CPM may mean different things to an SEO (Search engine Optimizer) than it does to an SMM (Social Media Manager) and something else entirely to a website developer, app developer, or a traditional marketer. For our purposes in this article page, we are going to take the 10,000-foot view and focus on the general digital media perspective. If this leaves you with any questions please don’t hesitate to ask! We love to respond with more specific follow-up content that may be helpful to you.
Ok, so back to “CPM” What is it? Why is it important and how can I use it to best serve my digital marketing or website management needs?
Why do we talk about CPM and use it in Digital Marketing?
. If a website publisher charges $2.00 CPM, that means an advertiser must pay $2.00 for every 1,000 impressions of its ad. Since CPM is cost per thousand impressions, then you simply divide the cost by the number of impressions divided by a thousand. On average you will find that Instagram is $8 per 1000 impressions, YouTube is $9 per 1000 impressions, LinkedIn is $6 per 1000 , impressions, and Twitter is $7 per 1000 impressions.
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