What is CPM.

What is CPM.

Defination of CPM.

What is CPM.  It is acronym for the cost per thousand . Many online adds are priced on the CPM basis that can be expressed for 1000 impressions ,  readers , viewers , visitors or listeners. For example  If a banner advertisement is placed at the price of $20/M then the CPM is $20, or $20 for 1000 impressions. It helps you to  comparing the advertising choices on different places .

cpm

Calculating CPM.

To calculate the  CPM , we have to  divide the cost of the  ad with the help of  number and  readers , viewers , listeners or visitors, that are  broken down by the  thousands.  If a ad costs $4,000 in a newspaper is  100,000 , and  your cost is  to reach 1,000 readers is $40, since 100,000 / 1,000 = 100 and $4,000 / 100 = $40. If a radio ad costs $250 and the station has 50,000 listeners, the CPM for that ad is $5. A $2,000 ad in a magazine with 20,000 readers may seem cheaper than the $4,000 newspaper ad , but by spending the  $100 to reach 1,000 readers ,  you have to  spend more money to reach the  each potential of  customer with the magazine.

Waste Circulation.

You should  use  the CPM for  itself,  if  you want to get the most-accurate comparison for the different advertising choices.  Then you have to do this that your  audience is women ,  most of the readers of a women’s magazine will help you in  potential customers. If you want to buy  a spot on a radio , then  you have to pay for  your ads broadcast to many men and children. When you start to  calculate CPM ,  then first look at the  media kits to eliminate those audience members which  aren’t your potential customer’s , then calculate your CPM from the remaining number.