What does CPM stand for in advertising?

In advertising, CPM stands for Cost Per Thousand. This metric is crucial because it represents the cost an advertiser pays to have their ad shown to a thousand viewers or impressions. It is a standard way of measuring the efficiency of an ad campaign concerning its reach. Advertisers often use CPM to compare the costs of different advertising channels and formats, making it easier to evaluate which options deliver the best value for reaching a target audience.

By focusing on the cost per thousand impressions, advertisers can better assess the performance and effectiveness of their ad spend. This metric helps in budget allocation and determining the overall return on investment for campaigns aimed at maximizing visibility and engagement with potential customers. Understanding CPM is essential for anyone involved in media buying or planning, as it informs strategies to optimize advertising spend across different platforms.