What is CPM and how is it used in planning?

What is CPM and how is it used in planning?

• A. Cost per mille.
• B. Cost per click.
• C. Cost per mille (CPM) equals cost per 1000 impressions; used to compare efficiency across media channels and decide where to allocate spend.
• D. Cost per engagement.

Answer: (C)

CPM is the price for delivering 1,000 ad impressions. It’s calculated by dividing the total media cost by the number of impressions and multiplying by 1,000. In planning, CPM lets you compare how efficiently different media channels deliver impressions for a given budget, so you can decide where to allocate spend. It also helps with budgeting and forecasting: total cost for a target number of impressions equals CPM times impressions divided by 1,000. Remember, CPM focuses on reach, not engagement or conversions, so it’s best used alongside other metrics to gauge overall effectiveness.

CPM is the price for delivering 1,000 ad impressions. It’s calculated by dividing the total media cost by the number of impressions and multiplying by 1,000. In planning, CPM lets you compare how efficiently different media channels deliver impressions for a given budget, so you can decide where to allocate spend. It also helps with budgeting and forecasting: total cost for a target number of impressions equals CPM times impressions divided by 1,000. Remember, CPM focuses on reach, not engagement or conversions, so it’s best used alongside other metrics to gauge overall effectiveness.