CPM (cost per mille)
The price of one thousand ad impressions; the M comes from the Latin word for thousand.
Definition
CPM is a common pricing and comparison metric for advertising. It is calculated by dividing the cost of a campaign by the number of impressions and multiplying by one thousand. A lower CPM is not automatically better because it says nothing about audience quality or outcomes. CPM is useful for comparing the cost of reach across channels and publishers, particularly for awareness campaigns. Agree how impressions are counted and whether they must be viewable. Remember that CPM rewards cheap reach, so combine it with measures of attention or response when the goal is more than awareness.
In a sentence
The video network sold inventory at a CPM that suited the awareness goal.
Comparing CPM across sites is only fair if the audiences are comparable.
