What does CPM mean?
CPM stands for “cost per mille”, which means “cost per thousand impressions.” It is a term used in online advertising to describe the amount an advertiser pays for every 1,000 views of their ad.
CPM is typically used for display advertising, such as banner ads, and is often expressed as a dollar amount. For example, an advertiser might pay $5 CPM for an ad campaign, which means they would pay $5 for every 1,000 views of their ad. CPM is used as a way for advertisers to pay for the visibility of their ads, rather than the number of clicks they generate.
Why is CPM important?
CPM is important because it allows businesses to measure the effectiveness of their advertising efforts in terms of how much cost they are willing to pay per thousand impressions. This allows them to calculate their return on investment (ROI) as well as target their audience more effectively. Additionally, CPM campaigns also allow businesses to target a specific geographic or demographic audience, which further helps in optimizing their advertising efforts.