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Cost per mille (CPM), also called cost per thousand (CPT), is a commonly used measurement in advertising. It is the cost an advertiser pays for one thousand views or clicks of an advertisement. Radio, television, newspaper, magazine, out-of-home advertising, and online advertising can be purchased on the basis of exposing the ad to one thousand viewers. It is used in marketing as a benchmarking metric to calculate the relative cost of an advertising campaign or an ad message in a given medium.
The "cost per thousand advertising impressions" metric (CPM) is calculated by dividing the cost of an advertising placement by the number of impressions (expressed in thousands) that it generates. CPM is useful for comparing the relative efficiency of various advertising opportunities or media and in evaluating the overall costs of advertising campaigns.
Cost per impression (CPI), or "cost per thousand impressions" (CPM), is a term used in traditional advertising media selection, as well as online advertising and marketing related to web traffic.It refers to the cost of traditional advertising or internet marketing or email advertising campaigns, where advertisers pay each time an ad is displayed. CPI is the cost or expense incurred for each potential customer who views the advertisement(s), while CPM refers to the cost or expense incurred for every thousand potential customers who view the advertisement(s).
