In marketing, cost per mille (CPM) or cost per thousand is the cost per thousand advertising contacts or the price the advertiser has to pay to have their ad displayed a thousand times.
In this case, advertisers speak of a thousand views or a thousand impressions (a term reserved for digital marketing).
On the web, CPM determines how much an advertiser must pay for their ad to be seen by a thousand internet users. It’s therefore a purely quantitative, not qualitative, indicator and measure.
Like cost per click (CPC), it's often found on Google Ads with display, for example, or when you want to launch campaigns on social networks for your social media marketing (SMM) strategy.
The CPM model can be a very beneficial way of assessing the profitability and reach of your ads. It can be used to raise a company's profile, promote new products, or enhance its brand image.
To calculate it, simply perform the following calculation:
(total campaign budget / total number of impressions) x 1,000
For example, if you paid $10,000 for an advertising campaign and this enabled you to reach a target of 400,000 internet users, the CPM is 25: ($10,000 / 400,000) x 1,000. In other words, you need to invest $25 to reach 1,000 people.
To help you, you can use our dedicated CPM calculator.
On the internet, CPM is a very popular form of advertising remuneration. It depends on the type of display and the duration of the ad.
The key, of course, is to strike the right balance between price and quality. As with any marketing campaign, placement is very important.
Advertisers therefore need to take the time to choose the right site or media on which to run their ads. They need to invest enough money to be seen, while ensuring the profitability of their campaign.
The number of visitors to the site on which the ad is placed therefore plays a decisive role. So don't try to find a low-cost CPM at any price.
Running an advertising campaign on a low-traffic site makes absolutely no sense, unless you're in a niche sector. The challenge is to find a CPM in line with your budget, while ensuring good visibility.
