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.

• CPM is used in online and offline advertising, including television, radio, print, and digital media.
• It is a commonly used metric in the advertising industry, as it allows advertisers to compare the costs of different ad campaigns and determine which are the most cost-effective.
• CPM is often used in conjunction with other metrics such as click-through rate (CTR) and conversion rate to gain a more complete understanding of the performance of an ad campaign.
• It is important to note that a lower CPM does not necessarily indicate a more successful campaign, as other factors such as audience engagement and conversions should also be considered.
• CPM is most commonly used for display, video, native and social media advertising.

Advertisers often use CPM to plan, buy and evaluate the cost-effectiveness of their media buys.

Differences Between CPM, CPC & CPA

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 (Cost per Thousand) measures the cost of displaying an advertisement 1000 times. It is calculated by dividing the total cost of the ad campaign by the number of impressions and then multiplying by 1000.
• CPC (Cost per Click) measures the cost of each click on an ad. It is calculated by dividing the total cost of the ad campaign by the number of clicks.
• CPA (Cost per Action) measures the cost of each conversion or action taken as a result of an ad. It is calculated by dividing the total cost of the ad campaign by the number of conversions or actions taken.

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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