Cost Per Thousand

Date created: Oct 12, 2022  •   Last updated: Oct 12, 2022

What is Cost Per Thousand?

Cost Per Thousand (CPM), also called Cost Per Mille, is a marketing term used to describe the price of 1,000 advertisement impressions on an advertiser's webpage. If a website publisher charges \$2.00 CPM, that means an advertiser must pay \$2.00 for every 1,000 impressions of its ad. The "M" in CPM represents the word "mille," which is Latin for "thousands."

How to calculate Cost Per Thousand

If an online advertiser pays a website \$500 that ultimately generates 150,000 impressions, then the CPM would be \$500/150,000 X 1,000 = \$3.33. Alternatively, if a website charges \$2.00 CPM, an advertiser with a budget of \$1,000 per month, will get 500K impressions for their ad each month.

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How to visualize Cost Per Thousand?

You can use a simple summary chart to effectively visualize your overall Cost Per Thousand data. Additionally, you can segment this data by campaign using a bar chart to study your performance in more detail.

Cost Per Thousand visualization examples

Cost Per Thousand

Bar Chart

Here's an example of how to visualize your Cost Per Thousand data in a bar chart to observe segmented data.

Cost Per Thousand

\$12

0.96

vs previous period

Summary Chart

Here's an example of how to visualize your current Cost Per Thousand data in comparison to a previous time period or date range.

Cost Per Thousand

Chart

Measuring Cost Per Thousand