What is CPM (Cost Per Mille)? – Definition
Also known as the cost-per-thousand impressions. The information in the CPM report refers mostly to Google Display Network (GDN) and shows how much you had to pay to reach 1,000 users. The indicator is especially important when building reach and brand awareness. Note that its value is higher in the case of detailed audience targeting or competitive markets.
When Should You Use It?
The CPM model is the most common model used when building reach and brand awareness. You pay for the visible display of our advertisement. For advertisers using CPC campaigns and considering the profitability of switching to CPM, CTR should be calculated.
Assuming that 1000 impressions cost you $10 (CPM = $1), and one click costs you $0.50 (CPC = $0.50), then CTR is 0.2%.
If your CTR is above 0.2%, you should consider billing in the CPM model. Remember that this is not a rule that will work every time. Each time, you must consider the desired result and the campaign goals set.
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