Cost per Mille (CPM)

Cost per mille, also known as cost per thousand, is a pricing model where the advertiser pays for every 1,000 ad impressions served. The acronym derives from the Latin mille for thousand. CPM is the classic model in display advertising and in fields where reach and brand building stand at the centre.

When CPM makes sense

CPM suits campaigns with the goal of brand awareness or reach building because the single click is not at the centre here. Premium environments with high quality editorial surroundings are also often negotiated on CPM. For performance campaigns with a clear ROI target CPA or CPC are usually better fits, provided the supplier offers such models.

How CPM is evaluated

A high CPM is not necessarily bad if the environment is particularly targeted and trustworthy. What matters is the relation to the impact achieved, meaning click rate, conversion rate and brand effect. Industry benchmarks vary widely between programmatic display, connected TV, premium ad slots and social networks. Viewability rates, the share of impressions actually seen, are an important complement to the bare CPM.

Reference to JD Partner

JD Partner frequently bills mailing campaigns on a cost per mille basis, meaning per 1,000 served email ad slots. Advertisers see the effective price per AdSpace in reporting and can value high performing lists at higher prices better than cheap lists with weak results. This makes the CPM the negotiation basis for individual campaigns.