What Is CPM? Marketing and Advertising CPM Explained For Beginners

What's up everyone welcome to the surfside ppc youtube channel today i'm gonna be going over cpm so what is cpm cpm stands for cost per mill mill is a latin word that means one thousand so cpm when it comes to marketing and advertising is the cost per 1000 ad impressions so every time an.

Advertiser has their ad shown 1000 times the cost for those ad impressions is the cpm so let's look at a few examples if i'm on facebook and i'm scrolling my facebook timeline you see a sponsored post right here so this advertisement the advertiser is.

Actually paying for this impression when it comes to youtube video advertising if you're seeing an advertisement on youtube and it plays for 30 seconds or longer unless it's one of the shorter ad units then the advertiser is being charged for that video ad.

Impression and then if we look at the linkedin feed you can see right here is an advertisement on my linkedin feed so they're paying for this impression so when it comes to cpm it's how much advertisers are paying for every 1 000 of those impressions so let's look at an example let's just say i'm running a display advertising.

Campaign i get 10 000 impressions and it costs 10 what is my cpm so the cpm formula is impressions divided by 1000 so you do that first and then you divide that by the cost and that's going to give you what your cpm is so in this case 10 000 divided by one.

Thousand is ten ten divided by the cost of ten is going to be one dollar so that would be my total cpm if i'm running an ad campaign and that would be my costs now the next question you probably have naturally is what is the average cpm and it really varies i would say the.

Average cpm across social advertising channels youtube and other display advertising channels is probably about 7.50 in my experience google display ads tend to have a very low cpm and you might see a cpm at a dollar now something like facebook or youtube i've seen cpm's.

Upwards of 20 and it really depends on the industry who you're trying to reach so if you're in certain industries reaching people in those industries is much more difficult so you're willing to spend more for every 1 000 impressions so that's the way that cpm works now.

It's not usually something where your main focus on your whole entire advertisement campaign is going to be based on cpm because you still want to drive conversions and run an effective campaign but sometimes you might know your cpm ahead of time and knowing your cpm and.

Knowing how much you're going to pay for every thousand impressions might mean the reason you go through with a specific buy of an advertising campaign or why you maybe put your money into something else so that's cpm if you have any questions about it please leave them in the comments.

Section thanks for watching my video today and make sure you subscribe to the surfside ppc youtube channel

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