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cost per mille (CPM)

In addition to cost per clicks( CPC), there is also cost per mille( CPM) as a billing model for e-marketing, which refers to 1,000 clicks. The German term is Tausenderkontaktpreis (TKP) and results from the ratio of 1,000 users who have seen the online advertising to the advertising costs.

It is the advertising costs incurred for 1,000 page impressions( PI). Both Cost per Click and Cost per Mille values depend on the banner format. Page impressions accumulate every time a visitor to a website is shown online advertising. It does not matter whether the Internet user clicks on the web advertisement or not.

Cost-per-X models of online advertising

Cost-per-X models of online advertising

If, for example, a banner costs EUR 10,000 and the advertising medium reaches 50,000 readers, this results in a cost per thousand of EUR -.20/readership. The CPM value was introduced for this purpose, so that advertisers can also calculate their advertising according to 1,000 impressions and, on the other hand, website operators can relate their revenues to the CPM value. Therefore, there is also the term "Revenues per Mille"( RPM). Both terms are often used synonymously.

The term thousand contact price was adopted from classic advertising in online advertising. However, the page impressions attributable to a website are clearly recorded by online registration techniques.

Englisch: cost per mille - CPM
Updated at: 11.03.2017
#Words: 206
Links: indium (In), cost per click (online ads) (CPC), collaborative production management (CPM), billing, online advertising (Ad)
Translations: DE

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