Cost Per Thousand (CPM)

How does one measure "cost per thousand?" Also known as "CPM" ("M" standing for the Roman Numeral of 1,000), cost per thousand is a helpful evaluation tool that reflects the actual advertising cost per mass sales campaign. For example, CPM is utilized (by Internet marketing professionals) to effectively price advertising banners, text links, etc.

Under normal circumstances, websites that promote or host CPM will guarantee advertisers a set number of impressions (Impressions are the amount of times that an ad banner will be made viewable to or will be downloaded by visitors.). A rate is then set based on the CPM rate guarantee. For example, if a website offers a CPM rate of $40, and then sets the ad banner impression guarantee at 400,000 times, the CPM would be calculated by multiplying $40 by 400 (400 units of 1,000). The advertiser's cost would be $16,000.

CPM rates are often associated with the following terms: banner advertising, click through rates, cost per click and impressions.

Used often in search engine optimization, CPM advertising campaigns can prove beneficial in reaching specific marketing goals including higher page rank, increased Internet traffic and overall improved sales.

To learn how CPM advertising can benefit you and your website, feel free to contact us at SEOAdept.com today. We can help.