8/13/2023 0 Comments Ad cost per impression![]() As one of the basic metrics used in digital advertising, marketers should pay close attention to CPM when making decisions about where and how they should allocate their advertising budget.ĬPM can be used to measure the effectiveness of an advertisement’s placement, as well as its overall success. Marketers and advertisers can use CPM to measure the effectiveness of their campaigns and adjust them to increase the return on investment (ROI). It enables you to understand how much it costs to reach your audience with a particular ad. The total amount of impressions generated is 500,000.Ĭost per impression = 3,000/500,000 = $0.006Ĭost per mille (cost per thousand) = 0.006 x 1000 = $6.00 Why is CPM important?ĬPM is an important metric to consider when planning, executing and optimizing digital advertising campaigns. Here is an example of how CPM is calculated:
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