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Cost per mille (CPM), also known as cost per thousand impressions, is a pricing model used in paid social advertising. Under this model, advertisers are charged based on the number of times their ad is shown, regardless of whether it is clicked on or not.
Cost per mille is calculated by dividing the total cost of the advertising campaign by the number of impressions. For example, if an advertiser spends $100 on a campaign that generates 1,000 impressions, their cost per mille would be $0.10.
One of the main benefits of cost per mille is that it allows advertisers to reach a large audience with their message without having to pay for each individual click. This makes it an effective way to build brand awareness and reach potential customers.
One of the main drawbacks of cost per mille is that it can be very expensive, especially for high-traffic websites. Additionally, advertisers may not get the results they want if people are not clicking on their ads.
Cost per mille can be an effective pricing model for paid social advertising, particularly when used to build brand awareness or reach a large audience. However, advertisers should be aware of the potential costs involved and the fact that people may not click on their ads.