Contoso Phones is planning a digital marketing campaign and is buying display advertising on a CPM basis. In this instance, what does 'CPM' mean?

Cost for every 1,000 ad impressions

Cost for every million ad impressions

Clicks per month

Clicks per mille

Certification program: 👉 Microsoft Advertising Native & Display certification

Explanation: The correct definition of ‘CPM’ in the context of Contoso Phones’ digital marketing campaign, where they are buying display advertising on a CPM basis, is Cost for every 1,000 ad impressions. This option accurately describes CPM (Cost Per Mille), which is a common pricing model used in digital advertising where advertisers pay for every 1,000 ad impressions served, regardless of whether or not users interact with the ad. CPM pricing enables advertisers to effectively manage their advertising costs while maximizing the reach and exposure of their ads across various websites and platforms within the Microsoft Advertising Native & Display context. By paying for impressions rather than clicks or conversions, advertisers can increase brand visibility, raise awareness, and drive engagement with their target audience, making CPM an ideal pricing model for display advertising campaigns aimed at building brand awareness and generating top-of-funnel interest. Therefore, understanding the meaning of CPM and its implications for campaign budgeting and performance measurement is essential for advertisers like Contoso Phones to effectively plan and execute their digital marketing campaigns within the Microsoft Advertising ecosystem.

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