Cost per mille (CPM) is a metric used in online advertising to measure the cost of displaying an ad 1,000 times. The CPM metric is often used to evaluate the effectiveness of display advertising campaigns, where the focus is on increasing brand awareness rather than driving direct conversions. In this article, we will explain what CPM is, how it's used, and how healthcare marketers can use CPM to evaluate their advertising campaigns.
CPM stands for cost per mille, where "mille" is Latin for "thousand." In the context of online advertising, CPM refers to the cost of displaying an ad 1,000 times. This metric is used to evaluate the cost-effectiveness of display advertising campaigns, where the goal is to increase brand awareness and reach a large audience.
CPM is used to evaluate the cost-effectiveness of display advertising campaigns by comparing the cost of displaying an ad 1,000 times to the number of impressions the ad receives. The lower the CPM, the more cost-effective the campaign. CPM can be used to compare different campaigns, different platforms, and different ad formats to see which ones are the most cost-effective.
CPM is particularly useful for healthcare marketers who are focused on building brand awareness and increasing visibility. CPM allows healthcare marketers to evaluate the cost-effectiveness of their display advertising campaigns and make data-driven decisions about where to allocate their advertising budget.
A good CPM varies depending on the industry and the specific campaign. However, healthcare marketers should aim for a CPM that is as low as possible while still achieving their advertising goals. It's also important to compare CPMs with industry averages and their own past campaigns to determine if the CPM is good.
Cost per mille is important because it helps businesses understand the cost of their ad campaigns and compare the relative costs of different advertising channels.
Cost per mille is calculated by dividing the total cost of an ad campaign by the number of impressions, or views, that the ad received, and multiplying by 1,000.
A good cost per mille varies depending on the industry and the specific goals of the campaign. Generally, a lower CPM is better, as it indicates that the campaign is reaching a large number of people at a lower cost.
To improve cost per mille, businesses can use strategies such as optimizing ad targeting, testing different ad formats and messaging, and negotiating lower ad rates with publishers.
Cost per mille measures the cost of displaying an ad to 1,000 people, while cost per click measures the cost of each individual click on an ad. CPM is a more general metric that measures the cost of ad impressions, while CPC is a more targeted metric that measures the cost of ad clicks.