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 .
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.
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.