Cost per Mille (short: CPM; french mille = thousand) is a billing model for advertisements in advertising planning. In CPM, the price of an ad is calculated per thousand impressions, which is why it is also known as the thousand-contact price.
Calculation of the CPM:
CPM = (total cost / reach) x 1000
In CPM, a distinction can be made between gross CPM and net CPM:
Gross CPM includes several contacts of a single person in the calculation.
With net CPM, the direct debit only takes place once 1000 different people have viewed the advertising measure.
In addition to online marketing, the cost per mille is also used in TV, radio and print advertising.
In addition to CPM, there are other, alternative billing models:
- Cost-per-click (CPC)
- Cost-per-order (CPO)
- Cost-per-sale (CPS)
- Cost-per-lead (CPM)