Cost per Mille (CPM)
Advertising price per 1,000 delivered contacts, classic billing model in display, print and email marketing.
Also known as: CPM, TKP, Tausenderkontaktpreis, Cost per Thousand
Cost per Mille, CPM in international use, called Tausenderkontaktpreis or TKP in German speaking markets, indicates how much advertising budget is spent per 1,000 reached recipients. It is one of the oldest and most transparent billing models in marketing and is used in print, display and email sending.
How CPM is calculated
The formula is simple: total advertising cost divided by the number of contacts reached, multiplied by 1,000. A campaign with a 5,000 euro budget reaching 250,000 emails has a CPM of 20 euro. The value is independent of clicks, leads or purchases and describes only the reach cost.
When CPM makes sense
CPM fits wherever reach is the actual advertising goal, e.g. for branding campaigns, product launches or attention focused campaigns. For performance driven campaigns with clear conversion goals, CPL or CPO models usually fit better.
CPM billing in JD Mail
JD Mail can bill sending campaigns flexibly by CPM, CPL, CPO or combinations. The reporting interface shows both pure reach metrics and the effective cost per action so both worlds can be compared directly.