Terms

CPM

Cost per mille (CPM) is a digital advertising metric that represents the price an advertiser pays for one thousand views, or impressions, of an advertisement. The term "mille" is Latin for thousand, which is why CPM is also referred to as cost-per-thousand. This model is primarily used for campaigns focused on increasing brand awareness and visibility by reaching a large audience.

Historical Context and Evolution

CPM's origins are in traditional advertising like print and television. As marketing moved online, the model was adapted to price digital ad space. It became a standard way for advertisers to pay for one thousand ad impressions.

The focus later expanded beyond simple impressions to user engagement. This led to alternative models like cost-per-click (CPC). The metric also evolved with concepts like viewable CPM (vCPM) to ensure ads are actually seen by users.

Applications and Use Cases

CPM is a versatile pricing model used for various digital advertising objectives. It's particularly effective for campaigns where the primary goal is to maximize visibility and reach rather than immediate user action. Advertisers leverage CPM to achieve specific strategic outcomes.

  • Brand Awareness: Building recognition by exposing the brand to a large, targeted audience.
  • Lead Generation: Driving potential customer interest through high-volume ad impressions.
  • Message Targeting: Delivering specific promotional messages to defined demographic or psychographic segments.
  • Campaign Diagnostics: Evaluating ad performance and targeting efficiency by analyzing impression costs.

CPM vs. CPC

While both are common pricing models in digital advertising, CPM and CPC serve distinct strategic purposes.

  • CPM: This model charges advertisers for every 1,000 ad impressions, regardless of clicks. It excels at building brand awareness and maximizing reach, making it a frequent choice for enterprises running large-scale campaigns. However, it doesn't guarantee user engagement, as payment is based on views alone.
  • CPC: With cost-per-click, advertisers pay only when a user clicks their ad. This model is ideal for driving traffic and conversions, often preferred by mid-market companies seeking measurable results and a clear return on investment. It ties costs directly to user action.

Key Metrics and Analysis

Analyzing a CPM campaign's success requires looking beyond raw impression counts. Marketers use several key metrics to measure performance and optimize for a better return on investment. These metrics provide a holistic view of how an ad is resonating with its target audience.

  • Impressions: The total number of times an advertisement is loaded and displayed on a user's screen.
  • Click-Through Rate (CTR): The percentage of impressions that lead to a click, measuring ad engagement and appeal.
  • Conversions: The number of users who complete a desired action, like a purchase or sign-up, after viewing the ad.

Industry Trends and Future Outlook

The digital advertising landscape is shifting towards greater automation and AI-driven personalization. As data privacy regulations tighten, contextual targeting is becoming more crucial for effective CPM campaigns. The future will likely see more sophisticated, privacy-conscious strategies that leverage AI to maximize ad relevance and impact without relying on third-party cookies.

Frequently Asked Questions about CPM

How is CPM calculated?

CPM is calculated by dividing the total cost of an ad campaign by the number of impressions, then multiplying by 1,000. The formula is (Total Cost / Total Impressions) x 1,000, giving you the cost per one thousand views.

What is considered a good CPM?

A "good" CPM varies widely by industry, ad placement, and targeting. While a lower CPM is often preferred, a higher CPM can be justified if it reaches a valuable, niche audience that delivers a strong return on investment for the campaign.

Is a high CPM always a bad thing?

Not necessarily. A high CPM can indicate you are reaching a premium, in-demand audience. If this audience converts well, the expensive impressions can be more profitable than cheaper, less targeted views. The key is to analyze the return on ad spend.

Other terms

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Sales Team Management

Sales team management is the process of leading, coaching, and motivating a sales team to achieve its sales goals and drive revenue growth.

Sales Team Management

Lead List

A lead list is a curated database of potential customers (leads) with contact information and other key data for sales and marketing outreach.

Lead List

Lead Response Time

Lead response time is the duration between a potential customer showing interest and your team's first point of contact with them.

Lead Response Time

Conversion Rate

Conversion rate is the percentage of visitors who complete a desired goal, like a purchase or sign-up, out of the total number of visitors.

Conversion Rate

Mobile Optimization

Mobile optimization adapts your website to ensure visitors on smartphones and tablets have a seamless, user-friendly experience.

Mobile Optimization

Account-Based Marketing Benchmarks

Account-Based Marketing (ABM) benchmarks are key metrics used to measure the performance and success of your targeted account strategies.

Account-Based Marketing Benchmarks

Custom Metadata Types

Custom Metadata Types store application configurations as metadata. This makes them easily deployable between different Salesforce environments.

Custom Metadata Types

Inside Sales Rep

An inside sales rep sells products or services remotely from an office, using digital tools like phone and email to connect with customers.

Inside Sales Rep

Sales Territory

A sales territory is a specific group of customers or a geographic area that a salesperson or sales team is responsible for managing.

Sales Territory

Hadoop

Hadoop is an open-source framework designed for the distributed storage and processing of extremely large data sets across clusters of computers.

Hadoop

Discount Strategies

Discount strategies are pricing tactics used to attract customers and boost sales by temporarily reducing the price of products or services.

Discount Strategies

Enterprise Resource Planning

Enterprise Resource Planning (ERP) is a system of integrated software that businesses use to manage and automate their core day-to-day processes.

Enterprise Resource Planning

Sales Conversion Rate

Sales conversion rate is the percentage of prospects who take a desired action, like making a purchase, turning them into customers.

Sales Conversion Rate

B2B Sales

Learn about B2B sales, including key strategies for B2B success, types of B2B sales models, & B2B vs. B2C sales: understanding the differences.

B2B Sales

Canary Releases

A canary release is a deployment strategy where new software is rolled out to a small user group first, minimizing risk before a full release.

Canary Releases

Load Balancing

Load balancing is the practice of distributing incoming network traffic across a group of backend servers, ensuring no single server is overworked.

Load Balancing

API

An API (Application Programming Interface) is a software intermediary that allows two applications to talk to each other and exchange information.

API

Consumer

A consumer is an individual or entity that buys products or services for personal use, not for resale. They are the final user in a supply chain.

Consumer

Ballpark

Learn about ballpark, including estimating with ballpark figures, understanding ballpark estimates in sales, & ballpark estimates vs. precise quotes.

Ballpark

Internal signals

Internal signals are data points from your own systems, like website visits or product usage, that indicate a customer's buying intent.

Internal signals

Cost Per Click (CPC)

Cost Per Click (CPC) is a digital advertising model where an advertiser pays a fee each time one of their ads gets clicked by a user.

Cost Per Click (CPC)

Business-to-Business (B2B)

Learn about B2B, including what is it, its key elements, the benefits of B2B partnerships, the differences between B2B and B2C, and strategies for effective marketing.

Business-to-Business (B2B)

Customer Experience

Customer experience (CX) is a customer's total perception of your business, based on every interaction across the entire customer lifecycle.

Customer Experience

Funnel Analysis

Funnel analysis is a method for understanding the steps users take to complete a goal, revealing where they drop off in the conversion process.

Funnel Analysis

Landing Pages

A landing page is a standalone web page created for a marketing campaign. It’s where a visitor “lands” after clicking an ad or email link.

Landing Pages

RESTful API

A RESTful API is a web service interface that uses HTTP requests to access and use data, adhering to the constraints of REST architecture.

RESTful API

Sales and Marketing Alignment

Sales and marketing alignment means both teams work in sync, sharing goals and data to boost lead quality, conversions, and company revenue.

Sales and Marketing Alignment

Upsell

Upselling is a sales tactic encouraging customers to purchase a higher-end version of a product or related add-ons to boost revenue.

Upsell

Subscription Models

Subscription models are a business strategy where customers pay a recurring fee at regular intervals for access to a product or service.

Subscription Models

Buyer

Learn about buyer, including identifying your ideal buyer, understanding buyer's journey, & evaluating buyer decision processes.

Buyer

Product-Led Growth

Product-Led Growth (PLG) is a business strategy where the product itself drives user acquisition, conversion, and expansion.

Product-Led Growth

Account Management

Account management is the post-sales practice of building and nurturing long-term relationships with a company's most valuable clients.

Account Management

Sales Demonstration

A sales demonstration is a presentation showing a prospect how a product or service works and how it can solve their specific problems.

Sales Demonstration

Warm Outreach

Warm outreach is contacting prospects with whom you have a pre-existing connection, like a mutual contact, making your message more personal and effective.

Warm Outreach

Behavioral Analytics

Learn about behavioral analytics, including implementing behavioral analytics successfully, & key metrics in behavioral analytics.

Behavioral Analytics

CDP

A Customer Data Platform (CDP) is software that gathers and organizes customer data from various touchpoints into a single, unified profile.

CDP

Account Development Representative

An Account Development Representative (ADR) identifies and qualifies new business opportunities, creating a pipeline for account executives.

Account Development Representative

Analytics Platforms

Analytics platforms are tools that collect and analyze data from various sources, helping businesses track key metrics and make informed decisions.

Analytics Platforms

Buying Criteria

Buying criteria are the specific requirements and standards a customer uses to evaluate products or services before making a decision.

Buying Criteria

Sales Methodology

A sales methodology is the framework that guides how your sales team approaches the entire sales process, from prospecting to closing deals.

Sales Methodology

Data Cleansing

Data cleansing, or data scrubbing, is the process of detecting and correcting inaccurate records from a dataset to improve data quality.

Data Cleansing

Progressive Web Apps

Progressive Web Apps (PWAs) are websites that look and feel like native mobile apps, offering features like offline access and push notifications.

Progressive Web Apps

Warm Email

A warm email is a message sent to a prospect with whom you have a pre-existing connection, like a mutual contact or a prior interaction.

Warm Email

Buyer’s Remorse

Buyer’s remorse is the sense of regret or anxiety that can arise after making a purchase, often questioning if it was the right decision.

Buyer’s Remorse

Zero-Based Budgeting (ZBB)

Zero-based budgeting (ZBB) is a method where all expenses are re-evaluated and must be justified from scratch for each new budget period.

Zero-Based Budgeting (ZBB)

Below the Line

Learn about below the line, including key strategies for below the line marketing, & distinguishing above and below the line tactics.

Below the Line

ClickFunnels

ClickFunnels is a popular online tool that lets entrepreneurs easily build sales funnels to guide potential customers through the buying process.

ClickFunnels

Data Mining

Data mining is the process of discovering patterns, trends, and useful information from large datasets to make better business decisions.

Data Mining

User Testing

User testing involves observing real users interact with a product to identify usability issues and improve the overall user experience.

User Testing

Contact Discovery

Contact discovery is the process of finding accurate contact details for potential leads, including names, emails, phone numbers, and job titles.

Contact Discovery

AI Data Enrichment

AI data enrichment uses artificial intelligence to automatically enhance and update raw data, making it more complete, accurate, and valuable.

AI Data Enrichment

Marketing Attribution

Marketing attribution is the process of identifying which touchpoints contribute to a conversion and assigning value to each of them.

Marketing Attribution

Drupal

Drupal is a free, open-source content management system (CMS) for building websites and applications. It's known for its robust flexibility.

Drupal

Rapport Building

Rapport building is the process of establishing a connection and mutual understanding with someone, creating a foundation of trust and affinity.

Rapport Building

Lead Generation

Lead generation is the process of identifying and cultivating potential customers for a business's products or services.

Lead Generation

Order Management

Order management is the end-to-end process of tracking customer orders from placement to fulfillment, ensuring a seamless customer experience.

Order Management

Stress Testing

Stress testing is a type of software testing that determines a system's robustness by pushing it beyond its normal operational capacity.

Stress Testing

Logo Retention

Logo retention is a key B2B metric that measures a company's ability to retain its customers, or 'logos,' over a specific period.

Logo Retention

Channel Sales

Channel sales is an indirect sales model where a company leverages third-party partners, such as resellers or affiliates, to sell its products.

Channel Sales

Account-Based Sales Development

Account-Based Sales Development (ABSD) is a focused strategy where SDRs target key stakeholders within specific, high-value accounts.

Account-Based Sales Development

Sales Development Representative (SDR)

A Sales Development Representative (SDR) is a sales specialist who finds and qualifies new leads, building a pipeline for the sales team.

Sales Development Representative (SDR)

Customer Data Platform (CDP)

A Customer Data Platform (CDP) centralizes customer data from all sources to create a complete, unified profile for each individual customer.

Customer Data Platform (CDP)

Guided Selling

Guided selling simplifies complex sales by giving reps step-by-step instructions and data-driven recommendations to close deals faster.

Guided Selling

Marketing Automation Platform

A marketing automation platform is software that automates marketing actions. It helps manage tasks like email campaigns and lead nurturing.

Marketing Automation Platform

Sales Manager

A Sales Manager leads a sales team, setting goals, analyzing performance, and developing strategies to drive revenue and meet targets.

Sales Manager

Average Order Value

Average Order Value (AOV) tracks the average dollar amount spent each time a customer places an order on your website or mobile app.

Average Order Value

Buying Signal

A buying signal is any action from a prospect that indicates they are interested in making a purchase, helping sales teams prioritize leads.

Buying Signal

Dark Social

Dark social is the sharing of content through private channels like messaging apps or email. This traffic is hard to track as it lacks referral data.

Dark Social

End of Quarter

“End of Quarter” (EOQ) refers to the final weeks of a business quarter when sales teams rush to meet quotas, often leading to a flurry of deals.

End of Quarter

Bottom of the Funnel

Learn about bottom of the funnel, including maximizing conversions at the funnel's end, & strategies for nurturing bottom-funnel leads.

Bottom of the Funnel

Competitive Analysis

Competitive analysis means identifying your rivals and assessing their strategies to pinpoint your own business's strengths and weaknesses.

Competitive Analysis

Feature Flags

Feature flags let you remotely control features in your app without new code. This enables safe testing, gradual rollouts, and quick rollbacks.

Feature Flags

Video Messaging

Video messaging involves sending short, personalized video clips to prospects or customers, replacing traditional text-based communication.

Video Messaging

Sales Metrics

Sales metrics are quantifiable data points that track and measure a sales team's performance against specific goals and objectives.

Sales Metrics

Contact Data

Contact data is the set of details, like names, emails, and phone numbers, used to get in touch with a person or business for outreach.

Contact Data

Inbound Sales

Inbound sales attracts interested prospects who've engaged with your brand, letting sales reps connect with warm leads instead of cold outreach.

Inbound Sales

Predictive Lead Generation

Predictive lead generation uses data and AI to find prospects most likely to buy, helping teams focus their efforts on high-value leads.

Predictive Lead Generation

Quarterly Business Review

A Quarterly Business Review (QBR) is a recurring meeting to assess performance against goals and align on strategy for the next quarter.

Quarterly Business Review

Business Intelligence In Marketing

Learn about business intelligence in marketing, including the role of data in marketing BI, key components of marketing BI, & marketing BI vs. market research.

Business Intelligence In Marketing

Real-time Data

Real-time data is information processed and made available almost instantaneously, enabling immediate analysis and decision-making.

Real-time Data

High Availability

High availability (HA) describes a system's capacity to function continuously with minimal downtime, ensuring consistent operational performance.

High Availability

Multi-threading

Multi-threading allows a single CPU core to run multiple independent threads (or tasks) at the same time, boosting efficiency and performance.

Multi-threading

Sales Compensation

Sales compensation is the total pay a salesperson receives, including salary, commissions, and bonuses, structured to motivate performance.

Sales Compensation

Dynamic Data

Dynamic data is information that updates in real-time. Unlike static data, it reflects the most current state of information automatically.

Dynamic Data

Sales Intelligence

Sales intelligence is technology that gathers and analyzes data to help salespeople find and understand prospects and existing clients.

Sales Intelligence

Request for Information

A Request for Information (RFI) is a formal process for gathering information from potential suppliers before issuing a more detailed proposal.

Request for Information

Sales Objections

Sales objections are reasons or concerns raised by a potential customer as to why they are hesitant or unwilling to make a purchase.

Sales Objections

Closed Lost

Closed Lost is a sales term for a deal that didn't go through. The prospect decided not to buy, or the sales team disqualified them.

Closed Lost

Edge Locations

Edge locations are globally distributed data centers that cache content close to users, reducing latency and delivering web content much faster.

Edge Locations

Page Views

Page views count the total number of times a page on your website is loaded. This metric is a key indicator of your site's overall traffic.

Page Views

SEM

Search Engine Marketing (SEM) is a digital marketing strategy that uses paid tactics to increase a website's visibility in search engine results.

SEM

Salesforce Object Query Language

Salesforce Object Query Language (SOQL) is a query language used to search your organization's Salesforce data for specific information.

Salesforce Object Query Language

Multi-Channel Marketing

Multi-channel marketing uses various platforms—like email, social media, and direct mail—to engage with customers wherever they are.

Multi-Channel Marketing

Account

An account is a company or organization that you're targeting for sales. It can be a prospective, current, or even a past customer.

Account

Performance Plan

A performance plan is a formal document outlining an employee's goals, expectations, and metrics for success over a specific period.

Performance Plan

Total Audience Measurement

Total Audience Measurement (TAM) provides a holistic view of content consumption, tracking viewership across all platforms and devices.

Total Audience Measurement

Dark Funnel

The Dark Funnel describes customer buying activities that are untrackable by companies, such as private chats and word-of-mouth referrals.

Dark Funnel

Text message marketing

Text message marketing is a strategy where businesses send promotional messages, offers, and updates to customers via SMS or MMS.

Text message marketing

Email Engagement

Email engagement measures how your audience interacts with your emails. It includes key actions like opens, clicks, replies, and forwards.

Email Engagement

Soft Sell

A soft sell is a low-pressure sales tactic that uses subtle persuasion and relationship-building to gently guide customers toward a purchase.

Soft Sell