CPM stands for Cost Per Thousand Impressions (also called cost per mille). This system measures the cost generated for every thousand impressions of an ad that has been exposed to the public on the internet. It is used to indicate the price of the advertising banners on the web pages. Its price is in relation to the thousands of impressions that can be made in a set period of time.
The purpose of this technique is to establish the duration of a project in which each one of the actions has a previously fixed term. The direct prices of a stock are normally inversely related to its duration.
Advertisers agree to pay the companies that are going to advertise the ad a specified amount of money per thousand impressions. In this way, the advertising company receives compensation for each ad it shows, being able to have a forecast of the profits they will generate.
In order for the ad to be seen by a thousand people it is essential that the place where it is going to be advertised has a lot of traffic.
This system is usually used by large and medium-sized brands that already have a well-established marketing and a fixed strategy. Its advantage is that by using this method you earn money for each ad seen regardless of generating clicks or other functions. Therefore each user who visits the site will make the company that advertises the ad earn money.
It is very important to know how long an ad will reach a thousand visits on the platform that has been selected.
CPM is calculated by taking the cost of advertising, dividing it by the total number of impressions and multiplying the result by a thousand. CPM = Advertising Cost / Impressions X 1000.
CPM optimization
To optimize CPM campaigns it is essential that it contains a call to action. To do this we will only have to add a link from which users can access our. Once they have accessed, we will look for a way to provide us with their data or to carry out any other action that we are interested in achieving.
On the other hand, we must be careful to choose the correct audience, and we will frequently check the times that the same user observes the notice. Adding a video or an image will attract the attention of Internet users and we will make them a future customer.