CPM Full Form

What is the full form of CMP?

The abbreviation for CPM is “Cost Per Mile”. This is also referred to as “Cost per thousand’ since a mile in Latin implies One thousand. This is a marketing method. It is used to measure raw impressions on advertisements. On any web page, CPM is a metric for measuring the cost of an advertisement per one thousand impressions by customers or viewers. So, it is an advertising crusade that is needed to take care of thousand promotion impacts on the page. This is nothing but what promoters will pay designers and distributors for every thousand perspectives on a commercial. This method is mostly used in web advertisement(ad) pricing strategies.

Definition of Cpm and its Role In Marketing:

The word CPM is abbreviated as: “Cost per mile”. This is used in marketing for calculating the price of thousand advertisement impressions on a web page. CPM is mostly used by advertisers. A high CPM value tells that it's a weak campaign and needs to boost your ad views. For example, if Rs 120 CPM is paid by a website producer, then an individual should pay 120/- for every thousand impressions of the advertisement.

Here for calculating CPM two terms are frequently used. They are Reach and Impression. The word ‘reach’ means the number of viewers any advertiser reaches and the word ‘impression’ means the number of times viewers view the content. The word ‘impressions’ is also known as “ad view”. To know the number of people who saw an advertisement and clicked on it, another term Click Through Rate (CRT) is used.

Formula of CPM

The formula for calculating the CPM is

CPM = 1000 * cost/ impressions

Consider an example, where the reach, the number of viewers any advertiser reaches is 500. The steps for calculating CPM are:

• Assume the amount spent by the advertising publisher on his content is INR(Indian Rupee) 200

• Each viewer clicks and views this content 2 times.

• Then, the number of impressions is 1000

• Thus, the CPM score is 200/1000 \times1000=200

• Therefore, the CPM for thousand views is INR 200.

Difference Between Cpc And Cpm

The word CPC stands for cost per click and the word CPM stands for cost per mile. As the word CPC stands, the advertiser pays when a viewer clicks on an ad. Where by the CPM, an advertiser pays for 1000 clicks or 1000 impressions. From these two, for an advertiser, CPM is the best method to choose.

Types of CPM

There are three types or variations of CPM. They are CPM, eCPM, and vCPM.

Here, eCPM is the effective cost per mile which measures the actual number of clicks by customers, and the number of impressions and gives the total cost of the advertisement. vCPM is the viewable cost per mile. It provides an accurate picture of the number of viewers who have seen the campaigns.

Importance of CPM

• CPM is important for finding the effectiveness of different media channels.

• If the CPM score is low, then that media is a strong campaign, and if it's high then that media needs to boost its ad views.

Uses of CPM

• CPM promotions can give consistent pay for the content.

• This method is simple to use and easily implemented.

• This is the best way for distributors to acquire additional income by increasing viewership and assisting sponsors with modifications to the content.

• It provides clear information about the risks and rewards of planning a particular campaign.

• This parameter tells how efficiently the campaign or advertisement reaches the audience.