CPM (cost per mille) is a paid advertising option where companies pay a price for every 1,000 impressions an ad receives. An “impression” refers to when someone sees a campaign on social media, the search engines or another marketing platform.
The CPM pricing structure is essential for businesses that manage affiliate networks. Social sites like Facebook offer CPM options for companies looking to raise brand awareness among new followers and the Google Display Network (GDN) is another popular environment for CPM bidding.
CPM vs. CPA/CPC
CPM is just one of many methods that websites and social sites use to price online advertisement strategies. While CPC or cost per click requires a business to pay every time someone clicks on an ad, CPM charges the advertiser whenever a promotional message is successfully displayed on a person’s web browser. Alternatively, CPA, or cost per acquisition, campaigns charge a brand whenever a customer converts by completing a critical action.
Each method of paid advertising available online today has unique strengths and weaknesses. CPM is ideal for social campaigns and online marketing strategies that focus on heightening brand awareness and delivering specific messages. When all you want to do is spread your name across the web, click-through rate doesn’t matter as much to your end goals.
