What does CPM stand for in advertising terminology?

The term CPM stands for Cost-per-Mille, which originates from the Latin word "mille," meaning "thousand." In the context of advertising, CPM is a model used to price the placement of ads and represents the cost an advertiser pays for one thousand impressions of their advertisement.

CPM is a common metric in digital advertising, helping advertisers understand the cost-effectiveness of their campaigns in reaching a large audience. By using CPM, advertisers can compare different ad placements and formats based on how much they will pay to reach a certain number of views. This model is particularly relevant for campaigns focused on brand awareness and visibility, as it measures the cost to deliver messages to a broad audience rather than just counting clicks or conversions.

Understanding this metric is essential for professionals in digital advertising, as it aids in budgeting ad spends and evaluating the performance of various platforms and ad formats.