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Glossary of Mobile Advertising Terms

CPM (Cost Per Mile)

What is CPM (Cost Per Mile)?

CPM (Cost Per Mile), also known as CPT (Cost Per Thousand), is a common term in marketing and advertising, which measures the price that an advertiser pays for one thousand clicks or views of his/her ad. CPM is yet another metric used in advertising, out of several like CPA or CPC.

When is a CPM acquisition model used?

While they are all important in their own way, some might be more useful than the other, depending on your campaign. For example, CPM is a better choice for campaigns focusing on delivering a particular message or focusing more on brand awareness.

How is CPM calculated?

It is calculated by dividing the cost of advertisement with a total number of impressions, and the result is then multiplied by 1000. So for example, if your CPM is 1$, for every 1000 impressions, you will be charged 1$.

In general, CPM is very useful for evaluating the overall costs of advertising campaigns and it can be said that its main purpose is to compare the costs of advertising campaigns across different media. You also have eCPM which stands for “effective cost per mile” and it’s used to measure the cost of every thousandth ad impression, regardless of the buying method (CPA, CPC, fixed price, etc.).