What is CPM Advertising?

CPM (Cost Per Mille) advertising is a pricing model where advertisers pay for every 1,000 impressions or views of their ad, rather than for individual clicks or conversions. "Mille" is Latin for thousand, which is where the model derives its name. In this setup, advertisers set a specific rate per thousand views, and they’re charged that amount each time their ad reaches 1,000 impressions on a given platform.

This model is widely used in display and video ads across platforms like websites, social media, and mobile apps, where the goal is to maximize brand visibility rather than direct response. CPM advertising is particularly effective for businesses focusing on brand awareness, as it ensures that a large audience sees the ad, even if they don’t take immediate action.

A key advantage of CPM is that it’s predictable; advertisers know the cost for a specific number of views. However, it’s less suitable for advertisers seeking direct conversions, as charges are based on views alone. Overall, CPM advertising is an essential tool for expanding brand reach and reinforcing brand messaging, making it popular among companies aiming to boost their presence in a cost-effective manner.