Cost Per Mille (CPM) is a common advertising metric representing the cost an advertiser pays for one thousand views or impressions of an advertisement. To determine the number of views a particular CPM-based campaign secured, the total advertising spend is divided by the CPM rate and then multiplied by one thousand. For instance, if an advertising campaign costs $500 with a CPM of $5, the calculation would be: ($500 / $5) * 1000 = 100,000 impressions.
Understanding the relationship between cost and the number of times an ad is displayed is crucial for effective campaign management and budget allocation. Analyzing this relationship allows advertisers to optimize their spending by identifying the most cost-effective platforms and strategies. Historically, this calculation has been fundamental in traditional print advertising and has transitioned seamlessly into the digital advertising landscape, retaining its significance as a key performance indicator.