Cost Per Thousand (CPM), also called cost per mille, is a marketing term in Goto Paid URL Shortener to denote the price of 1,000 advertisement impressions on one webpage. If a publisher charges Rs. 200.00 CPM, that means an advertiser must pay Rs. 200.00 for every 1,000 impressions of its ad. The "M" in CPM represents the word "mille," which is Latin for "thousands."
CPM is the easy method for pricing website advertisement. Advertisers frequently measure the success of a CPM campaign by its Click-Through Rate (CTR), which is the percentage of people who saw your ad and clicked on it.
For example, an advertisement that receives two clicks for every 100 impressions has a 2% CTR. You may not measure the advertisement's success by CTR only because an AD that a reader views but does not click may still have an impact.
Advertisers often use CPM to plan, buy and evaluate the cost-effectiveness of their media buys.
CPM refers one of several methods used to price web advertisements. Other pricing models include cost per click (CPC), where the advertiser pays each time a website visitor clicks on the ad, and cost per acquisition (CPA), where the advertiser only pays each time a website visitor makes a purchase after clicking an ad.
Remember that, different pricing methods are more appropriate for some ad campaigns than others. Cost Per Thousand (CPM) makes the most sense for a campaign focused on heightening brand awareness and delivering a specific message. In this situation, the Click-Through Rate (CTR) matters less, since the exposure from having an AD specifically placed on a high-traffic website helps promote a company's brand name or message, even if visitors do not click on the AD.
CPM, CPC, and CPA are all advertising terms used to measure the performance and cost-effectiveness of an ad campaign, but they are calculated differently.
CPM is typically used for brand awareness campaigns where the goal is to get the ad seen by as many people as possible, CPC is used for direct response campaigns where the goal is to drive traffic to a website or landing page, and CPA is used for performance-based campaigns where the goal is to generate a specific action, such as a sale or lead.
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