What does CPM stand for in advertising?

CPM stands for Cost Per Thousand, a critical metric in advertising that helps marketers evaluate the cost-effectiveness of their ad campaigns. This metric indicates how much it costs to reach one thousand potential viewers or impressions of an advertisement. The term "thousand" is derived from the Latin word "mille," which is the root for the 'M' in CPM.

Using CPM allows advertisers to compare the relative cost of different advertising channels and formats more easily. This is particularly useful when negotiating ad placements or assessing media buys across various platforms, such as digital, print, or broadcast.

Understanding CPM is essential for making informed decisions in advertising budget allocations, ensuring that marketers can maximize their return on investment by choosing the most cost-effective strategies for reaching their target audience.