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CPM stands for Cost per mille, or cost per thousand. It is a measurement usually used in advertising.  Radio, television, magazine, newspapers and online advertising can be bought on the ground of the advertisement being shown to a thousand people. Marketing uses this system mostly as a bench marking metric system to count the dependent cost of the given advertisement. The cost per thousand advertising impressions metric is calculated by splitting the cost of the advertisement by the number of impressions which is expressed in thousands.  This is a good way of advertising because it can in a way evaluate the complete costs of an ad. The goal of this kind of advertisement is to see which kind of advertising, and which media is the best and cheapest to work with. One campaign may try a variety of locations and media, before it decides with which one to stick. Marketers calculate CPM by dividing advertising campaign costs by the number of impressions (or opportunities-to-see) that are delivered by each part of the campaign. Thus, CPM is the cost of a media campaign, relative to its success in generating impressions to see. As the impression counts are generally sizeable, marketers customarily work with the CPM impressions. Dividing by 1,000 is an industry standard.

 

 

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