Cost Per Mille Measure

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A Cost Per Mille Measure is an advertising measurement based on Cost Per Impression.



References

2013

  • (Wikipedia, 2013) ⇒ http://en.wikipedia.org/wiki/Cost_per_mille Retrieved:2013-12-3.
    • Cost per mille (CPM), also called cost ‰ and cost per thousand (CPT) (in Latin mille means thousand), is a commonly used measurement in advertising. Radio, television, newspaper, magazine, out-of-home advertising, and online advertising can be purchased on the basis of showing the ad to one thousand viewers. It is used in marketing as a benchmark to calculate the relative cost of an advertising campaign or an ad message in a given medium.[1] [2]

      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 in comparing the relative efficiency of different advertising opportunities or media and in evaluating the costs of overall campaigns. [3]

      For media without countable views, CPM reflects the cost per 1000 estimated views of the ad. This traditional form of measuring advertising cost can also be used in tandem with performance based models such as percentage of sale, or cost per acquisition (CPA).

  1. American Marketing Association Dictionary. http://www.marketingpower.com/_layouts/Dictionary.aspx. Retrieved 2012-11-28. The Marketing Accountability Standards Board (MASB) endorses this definition as part of its ongoing Common Language: Marketing Activities and Metrics Project.
  2. www.sempo.org. Glossary of Terms. Retrieved 2012-11-28.
  3. Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; David J. Reibstein (2010). Marketing Metrics: The Definitive Guide to Measuring Marketing Performance. Upper Saddle River, New Jersey: Pearson Education, Inc. ISBN 0-13-705829-2. The Marketing Accountability Standards Board (MASB) endorses the definitions, purposes, and constructs of classes of measures that appear in Marketing Metrics as part of its ongoing Common Language: Marketing Activities and Metrics Project.