What does CPM stand for in advertising metrics?

CPM stands for "Cost Per Mille," where "Mille" is derived from the Latin word for "thousand." In advertising metrics, CPM is a commonly used term that indicates the cost an advertiser pays for every one thousand impressions of their ad. This metric is crucial for digital marketing and media buying as it allows advertisers to understand the cost-effectiveness of their ad placements when reaching a wide audience.

Advertisers use CPM to assess and compare the pricing of various advertising channels and campaigns, enabling them to make informed decisions about where to allocate their budget for maximum visibility. By focusing on impressions rather than clicks or conversions, CPM provides insight into brand exposure and awareness. This metric is particularly useful in display advertising and other visual ad formats, facilitating advertisers in setting and evaluating their campaigns based on awareness rather than direct response metrics.