What does CPM stand for in advertising?

In the context of advertising, CPM stands for "Cost per Thousand." This term is widely used in advertising metrics to denote the cost that an advertiser pays for one thousand impressions of their advertisement. It is a crucial measure in evaluating the efficiency and cost-effectiveness of an advertising campaign, particularly in digital and print media. By calculating CPM, advertisers can compare the relative costs of different advertising channels and assess which channels offer better reach at lower costs.

This metric allows advertisers to set a clear budget and understand how much they might expect to spend in relation to the number of impressions they can acquire. Knowing the CPM helps in making informed decisions about where to allocate resources in an advertising strategy, aiming to maximize visibility while managing expenses effectively. This makes it an essential concept for anyone involved in marketing and advertising planning.