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

Clicks per month

Cost for every million ad impressions

Clicks per mille

Cost for every 1,000 ad impressions


Choose an option to see if it’s correct. Check the explanation below. Learn Smarter, not Harder.

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


Explanation: The selected answer option, **Cost for every 1,000 ad impressions**, is correct because 'CPM' stands for 'Cost per Thousand' ad impressions. The 'M' in CPM comes from the Latin word 'mille,' meaning thousand. In this pricing model, advertisers are charged for every 1,000 times their ad is displayed, regardless of whether the user clicks on the ad. This model is commonly used in display advertising, where the focus is on brand visibility and reaching a wide audience. The CPM model allows advertisers to plan and budget for their campaigns based on the expected cost of reaching a specific number of impressions, making it ideal for campaigns aimed at increasing awareness.

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