What is CPM in Digital Marketing – Everything You Should Know

‘What is CPM in Digital Marketing?’ – has this question ever risen in your mind? Well, the world of advertising is filled with an infinite number of abbreviations and key terms that can easily overwhelm any beginner.

However, it is very important to understand these terms to analyze your marketing statistics and create strategies that are ultra-successful. In this post, we are going to discuss one such marketing term that we hear so often – CPM.

Let’s get started!

What is CPM in Marketing?

CPM is the short-form for ‘Cost-Per-Mille’. Here, ‘mille’ is essentially a Latin word which means ‘thousand’. The term CPM is used when you want to know the cost-per-thousand impressions of any campaign.

If you want to know how much you need to spend for a thousand impressions, you will have to know the CPM for the ad campaign. The CPM model has been used for a long time in advertising as the primary method to determine ad spend for any online ad.

No matter how much the modern online ads have evolved, the CPM model is still being preached. This is how you can calculate your CPM. Get the total number of impressions you want and then divide the number by 1000. You now have the number of impressions per thousand people. To know the cost of getting the number of impressions per thousand people, you can divide the campaign budget by the number you got and voila!

This will allow you to know how much budget you need to set to get the desired number of impressions. There are still many other advertising models like Cost-per-Completed-View and Cost-per-Engagement that are being used for different kinds of ad campaigns. But, if you are still looking to go back to basics, CPM is the model you’d like to follow.

What is the Purpose of CPM in Marketing?

Wondering what are the applications of CPM in marketing? This section will help you identify the ‘why’ and ‘where’ of using CPM in digital marketing.

No matter what people say, you must always keep in mind that the most important purpose of CPM in the world of digital marketing is building brand awareness. It is so important to invest in branding especially when your company is new in the market. The objectives of running an ad campaign will always revolve around making people know that your brand exists and is ready to serve.

After all, why would online users click on an ad to buy a product from a brand they don’t even know? Therefore, a CPM campaign is the build-up you need to create a highly successful conversion-oriented campaign in the later stages of your online marketing campaign.

Wrapping Up

CPM in advertising can make your brand get the right number of click-throughs and sales. It is a tool, which when coupled with the right expertise and strategy, can really make your marketing campaigns work like magic. We hope this piece of content helped you understand CPM and its purposes. Let us know what you think about CPM in advertising. We’d love to hear from you!

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