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Cost per mille (CPM), also called cost per thousand (CPT) (in Latin, French and Italian, mille means one thousand), is a commonly-used measurement in advertising. It is the cost an advertiser pays for one thousand views or impressions of an advertisement. [ 1 ]
Cost per impression, along with pay-per-click (PPC) and cost per order, is used to assess the cost-effectiveness and profitability of online advertising. [1] Cost per impression is the closest online advertising strategy to those offered in other media such as television, radio or print, which sell advertising based on estimated viewership, listenership, or readership.
The count rates of cps and cpm are generally accepted and convenient practical rate measurements. They are not SI units , but are de facto radiological units of measure in widespread use. Counts per minute (abbreviated to cpm) is a measure of the detection rate of ionization events per minute.
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Pay-per-click, along with cost per impression (CPM) and cost per order, is used to assess the cost-effectiveness and profitability of internet marketing and drive the cost of running an advertisement campaign as low as possible while retaining set goals. [7]
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The average click-through rate of 3% in the 1990s declined to 2.4%–0.4% by 2002. [7] Since advertisers typically pay more for a high click-through rate, getting many click-throughs with few purchases is undesirable to advertisers. [6]