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What is Cost Per Mille in marketing and sales?

CPM is often used as a way to measure the effectiveness of an advertising campaign.

Cost Per Mille (CPM) is a term that is used to describe the cost of an advertising campaign that is based on the number of impressions (or "views") of an advertisement. "Mille" is Latin for "thousand," so "cost per mille" refers to the cost of the campaign for every 1,000 impressions of the advertisement.

 

CPM is often used as a way to measure the effectiveness of an advertising campaign, and to determine the return on investment (ROI) of the campaign. To calculate CPM, you divide the total cost of the advertising campaign by the number of impressions, and then multiply that number by 1,000.

 

For example, if an advertising campaign costs $1,000 and generates 100,000 impressions, the CPM would be calculated as follows:

CPM = $1,000 / 100,000 impressions * 1,000 = $10

 

In this example, the CPM of the advertising campaign is $10. This means that the campaign cost $10 for every 1,000 impressions of the advertisement.

 

CPM is commonly used in digital marketing, particularly in campaigns that are based on pay-per-click (PPC) advertising, where advertisers pay each time someone clicks on their advertisement.

 

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