# Cost per mille

ECPM redirects here. It is also short for European Christian Political Movement.

Cost per mille (CPM), also called cost ‰ and cost per thousand (CPT) (in Latin mille means thousand), is a commonly used measurement in advertising. Radio, television, newspaper, magazine, out-of-home advertising, and online advertising can be purchased on the basis of what it costs to show the ad to one thousand viewers (CPM). It is used in marketing as a benchmark to calculate the relative cost of an advertising campaign or an ad message in a given medium. Rather than an absolute cost, CPM estimates the cost per 1000 views of the ad.

An example of computing the CPM:

1. Total cost for running the ad is \$15,000.
2. The total audience is 2,400,000 people.
3. CPM is calculated as CPM = \$15,000/(2,400,000/1000) = \$6.25

## Examples

• In online advertising, if a website sells banner ads for a \$20 CPM, that means it costs \$20 to show the banner on 1000 page views.
• While the Super Bowl has the highest per-spot ad cost in the United States, it also has the most television viewers annually. Consequently, its CPM may be comparable to a less expensive spot aired during standard programming.

## Effective cost per mille

Effective cost per mille (eCPM) is used to measure the effectiveness of a publisher's inventory being sold (by the publisher) via a CPA, CPC, or CPT basis. In other words, the eCPM tells the publisher what they would have received if they sold the advertising inventory on a CPM basis (instead of a CPA, CPC, or CPT basis).

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