Description: Cost Per Mile – it is a marketing model where an advertiser pays for each thousands of displays. Clicks, conversions or any actions are not of high importance here, but to show the ad to huge audiences.
What will your company do when they need to advertise their new product or service? Exactly, it is important to know about it as more people as possible, an Internet is the best place for it.
What does CPM stand for?
Cost Per Mile – it is a marketing model where an advertiser pays for each thousands of displays. Clicks, conversions or any actions are not of high importance here, but to show the ad to huge audiences. Native advertising platform https://absolutclick.com/ works with different pricing models – CPM, CPC, CPI, CPA
How to calculate CPM?
Formula: How to calculate CPM
CPM = costs per ads posting / number of displays x 1 000 shows
Banner posting on a popular entertaining website is $147 per week, approximate number of shows is 14311 for the same period. As we have all necessary basic data, let’s calculate:
CPM = 147 / 14311 x 1 000 = $10,27 per thousand displays
This model is an important indicator for an image composition. The cheaper are displays, the more media outreach we have. Commercial advertising campaigns are more focused on the cost of user’s conversion.
CPM greatly influences CTR. The less off-target displays you have, the cheaper clicks are and, thus, you save money. It is ok to have a high CPM for a company, but only with a provision that it leads to big amount of cheap and target clicks and, in future, target actions. Congrats, you are on the right tracks!
So, now you know what CPM stands for. We have more information on our website – subscribe to stay informed!