What does CPM stand for in advertising?

CPM in advertising stands for Cost per Thousand, which is derived from the term "Mille," the Latin word for thousand. This metric is used to quantify the cost of reaching one thousand potential viewers or impressions of an advertisement. CPM is particularly important in the context of digital advertising and marketing, as it helps advertisers understand the relative cost-effectiveness of different media outlets or advertising platforms by providing a standard measurement for comparison.

When advertisers analyze their marketing campaigns, CPM allows them to assess how much they are spending to reach a specific number of consumers, thus aiding in budget allocation and strategy formulation. Understanding CPM is crucial for making informed decisions about the placement and expenditure of advertising campaigns.