Marketing Dictionary
Cost Per Impression (CPM)
Definition
A term used in online advertising and media related to web traffic. It refers to the cost of internet marketing campaigns where advertisers pay for every 1,000 impressions of their advertisement.
Deep Dive
Cost Per Impression (CPM), often referred to as Cost Per Mille (where 'Mille' is Latin for thousands), is an online advertising pricing model where advertisers pay for every 1,000 times their advertisement is displayed to users. Unlike click-based models, CPM focuses purely on exposure; an "impression" simply means the ad was loaded and visible on a webpage or app, regardless of whether a user interacted with it. It's a common metric for display, video, and native advertising campaigns aimed at maximizing visibility.
Examples & Use Cases
- 1A new streaming service running video ads on YouTube, paying $10 CPM to show their trailer to 100,000 potential viewers (100 'milles').
- 2A global fashion brand placing banner ads on high-traffic news websites, paying $5 CPM to ensure their new collection is seen by millions.
Related Terms
ImpressionsBrand AwarenessReach