AKA:
Cost Per Thousand, Cost Per 1000, Cost Per 1000 Impressions, Effective CPM (eCPM)
What does it mean:
Used in media buying, especially banner advertising, this is the cost of 1000 impressions of your advertisement.
The formula:
Total Media Cost / (Impressions x 1000) = CPM
Use it in a sentence:
To colleagues:
“For our rebrand campaign let’s buy some premium CPMs on awesome media sites.”
To investors:
“We make money from our users showing them ads and on a CPM model”
At a party:
“Remember the good ol’ days when CPMs were low and banner ad Click Through Rates (CTR) were high? Good times, good times.”
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