What Are CPM in Marketing and Why Do You Need it in Your Business?

“What is CPM in advertising?” You might have come across this term before and you might not really understand what it means. In fact, you probably do not know what exactly is CPM at all. The term simply means cost per thousand impressions. In simpler terms, when a person sees your ad, he/ she will pay you a certain amount of dollars for letting them see your advertisement.

what is cpm in marketing

When you are into internet marketing, one term that is very important to know is cost per click. What is CPM in internet marketing is cost per click – the amount that your customer will pay you when they click on your ad on the search engines. This is actually how you earn your profit from the advertisements on the top ranking websites of the world wide web.

To get an idea of what is good CPM, let us do some simple calculations. If you choose the keyword “online marketing” as your key term, you will find that CPM in online marketing is about $3.50. Therefore, if you run two different campaigns using the same keyword, the first one with a low cost and the second with a higher cost, the second campaign would do you better than the first one which has a higher CPM.

With such an important factor in website marketing, it is understandable that you would want to know more about it. You can find a lot of information about it over the internet. In fact, there are lots of resources where you can find the exact formulation of good cpm formula for your marketing campaigns. However, these resources can be very confusing to use especially for those who are just starting to run their businesses. Here are some things retailers need to understand about what is CPM in website marketing:

What is CPM in marketing is the cost per thousand impressions or the cost per thousand views? This is the average amount that the marketer has to pay every time his or her website is displayed in the search engine results. If a search engine displays your website, the visitor must first be redirected to your website and if your website has good content, this visitor will most probably be interested to browse further and come across your products. If the customer visits your website and finds no good content or the visitor is not convinced by the design and layout of your website, then the visitor will not be persuaded to make a purchase right there and then.

Therefore, when you are talking about what is CPM in marketing, you should know that the cost per impression is the total amount a customer has to spend just to visit your website for one single visit. It can also be referred as cost per action or cost per activity. This measurement is often used in online marketing campaigns and businesses are advised to track the CPM in their campaigns so they can determine which keywords or landing pages work best with their strategies. Knowing the right metrics aimed at your business’ target market is very important when you want to improve your online marketing campaigns.