That way, you can get a general understanding of how well the ad resonated with users. Still, one common way to determine the efficiency of a CPM campaign is to look at CTR (click-through rate), which is the ratio of clicks an ad receives compared to overall impressions. In fact, a CPM campaign is great for creating and elevating brand awareness in preparation for a more conversion-oriented campaign.īecause CPM campaigns are so brand oriented, and don't require the users to engage with the ad, it's difficult to measure its performance. Similarly, cost-per-engagement advertising requires some kind of action beyond the initial impression, like taking a survey or playing a mini-game. For example, in a cost-per-completed-view pricing model, advertisers don’t pay until a video ad is watched in its entirety - so simply looking at the ad isn’t enough in that case. This is in contrast to performance marketing campaigns and pricing models that require advertisers to pay only when users complete a specific action.

That's because, with CPM campaigns, advertisers are buying ad impressions, essentially looking to get more eyes on their ads. CPM in marketing and advertisingĬPM pricing is ideal for brand advertising campaigns, or campaigns that have a goal to increase exposure and brand awareness. The “M” stands for ‘mille’ which is Latin for 1,000. CPM, or Cost Per Mille, is a pricing model for advertisers, referring to the amount advertisers pay to display 1,000 ad impressions.

Cost per impression formula