CPM
What is CPM (Cost per mille)?
Cost per mille is a commonly used cost for one thousand impressions of an online advertisement. In online marketing, it refers to an ad that has been seen by one thousand users. It can also mean the cost of one thousand ad views. For example, if the total cost per mille is $30, it means that for every thousand ad impressions, the advertiser pays $30.
Advertising under the paid display option known as cost per mille is directly related to investing in Google Ads on the display network and is an alternative to another version - CPC (in this case, costs are charged regardless of whether and how many users click on the ad and interact with it).
Choosing a CPM campaign involves the possibility of optimizing costs, which is influenced by factors such as the advertiser's intended goal. The billing model can be set up to allow the most favorable return on investment.
The CPM model is most commonly chosen when a company or brand aims to build reach and promote the brand and increase awareness. To compare the profitability of CPM advertising with the alternative CPC version, you need to calculate the boundary CTR using the formula: bCTR = CPM/CPC * 0.1%. When the value exceeds 0.2%, it is worth considering billing in the CPM model, although this is not a rule, as the ultimate effectiveness of this type of advertising is also influenced by other factors, including the expected end result and campaign goal.
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Useful links:
https://nowymarketing.pl/a/7810,c-cpm-encyklopedia-marketingu