What is CPM Marketing? A Guide to Boosting Brand Awareness in 2024

What is CPM?

CPM, or cost per mille, is a marketing metric that measures the cost of reaching 1,000 potential customers. It is a common method used in online advertising to determine the cost of digital ad campaigns.

Benefits of CPM

Improved brand awareness

CPM marketing can help boost brand awareness by exposing your ads to a large audience, even if they don’t click on the ad. This can lead to increased recognition and familiarity with your brand.

Cost-effective customer acquisition

CPM can be a cost-effective method for acquiring new customers, especially when compared to other advertising models like CPC (cost per click) or CPA (cost per action).

Effective retargeting

CPM allows for effective retargeting of potential customers who have already been exposed to your ads. This can lead to higher conversion rates and improved ROI for your marketing efforts.

How to calculate CPM

CPM is calculated by dividing the total cost of the ad campaign by the number of impressions, and then multiplying by 1,000. The formula is: CPM = (Total cost / Total impressions) x 1,000.

CPM calculation example

For example, if you spent $1,000 on an ad campaign that received 100,000 impressions, the CPM would be calculated as follows: CPM = ($1,000 / 100,000) x 1,000 = $10.

CPM vs. CPC vs. CPA: What’s the difference?

CPM (cost per mille)

CPM measures the cost of reaching 1,000 potential customers and is commonly used in display advertising.

CPC (cost per click)

CPC measures the cost of each click on an ad and is commonly used in search engine advertising, such as Google AdWords.

CPA (cost per action)

CPA measures the cost of a specific action, such as a purchase or form submission, and is commonly used in affiliate marketing and performance-based advertising.

CPM marketing FAQ

What is a drawback of CPM?

One drawback of CPM marketing is that it does not guarantee engagement or action from potential customers. While it can increase brand awareness, it may not directly lead to conversions.

What is the difference between impressions and page views?

Impressions refer to the number of times an ad is displayed to a user, while page views refer to the number of times a web page is viewed. One page view can contain multiple ad impressions if the ad is displayed multiple times on the same page.

What is a good CPM for marketing?

A good CPM for marketing can vary depending on the industry, target audience, and advertising platform. However, a CPM below $10 is generally considered to be cost-effective for many businesses.

What is CPC and CPM in marketing?

CPC (cost per click) measures the cost of each click on an ad, while CPM (cost per mille) measures the cost of reaching 1,000 potential customers. Both metrics are used in online advertising to measure the effectiveness and cost of ad campaigns.