Cost per thousand

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Cost per thousand or cost per mille (abbreviated as CPT or, more commonly, CPM) is used in marketing as a benchmark to calculate the relative cost of an advertising campaign or an ad message in a given medium. Rather than an absolute cost, CPM estimates the cost per 1000 views of the ad.

For example, while the Super Bowl has the highest per-spot ad cost in the United States, it also has the most television viewers annually. Consequently, its CPM may be comparable to a less expensive spot aired during standard programming.

An example of computing the CPM:

  1. Total cost for running the ad is $15,000.
  2. The total audience is 2,400,000 people.
  3. The CPM is computed as CPM = $15,000 / 2,400,000 \times 1000 = $6.25.

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