1. Marketing
  2. Traditional Advertising

Cost Per Thousand (CPM)

Money

The cost of reaching 1,000 audience members with a particular advertisement. Helps in evaluating and comparing the cost-effectiveness of different advertising mediums.

Formula

Total Ad Spend / (Total Impressions / 1000)

Example

If an ad campaign costs $10,000 and reaches 2 million people, the CPM is $5.