Marketing Acronyms

Cost Per Mille (CPM)

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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