Average CPM (cost per thousand impressions)

What is Average CPM Comparatively To Other Digital Advertising Metrics?

Average CPM (Cost per Thousand Impressions) is the metric that attempts to quantify the cost and expenditure that a business sinks into advertising each time their ad garner a thousand impressions. It is adopted throughout digital advertising from display ads to social media and even in programmatic advertising to gauge the effectiveness and profitability of a campaign.

CPM unlike cost-per-click (CPC) or cost-per-acquisition (CPA), places its emphasis on impression based pricing which makes it important especially for brand perceptions. Advertisements with greater CPM seem to be more widely sought-after than advertisers with lower CPM because lower CPM reflects lower campaign cost efficiency and poorer targeting advertisements.

Why Is Average CPM Important?

For advertisers seeking budget optimization and maximal digital footprint, CPM is invaluable. Ensuring brands the optimal CPM allows for greater visibility, stronger audience participation, and even recall from the brand as they expect greater advertisement impressions vis-a-vis advertisement expenditure.

It enables marketing teams to track ad performance across channels and pinpoint where operations are unnecessarily spending resources. They enable ad networks to make calculative changes to their bidding strategies and interchange with alternate CPM ad networks. In essence, by keeping a finger on the pulse of their CPM, organizations can fine-tune their advertising strategies while drawing deeper into their pockets.