What is Effective Cost per Mille?
Effective cost per mille (CPM) is a type of cost-per-click (CPC) advertising model that is used to measure the cost effectiveness of an online ad campaign. CPM is the cost per thousand impressions (Mille is the Latin term for thousand) and is used to measure the cost of each ad impression. It is often used to determine the most cost-effective ad campaigns and is used to compare the cost of different ad campaigns.
How is Effective Cost per Mille Calculated?
Effective cost per mille is calculated by taking the total cost of the ad campaign and dividing it by the number of impressions (in thousands). For example, if an ad campaign costs $10,000 and had 1 million impressions, then the effective cost per mille would be $10.
Benefits of Effective Cost per Mille
There are many benefits to using effective cost per mille to measure the success of an online ad campaign. Here are some of the key benefits:
- It allows you to compare the cost effectiveness of different campaigns.
- It can help you identify the most cost-effective campaigns.
- It is a reliable measure of the cost of an ad impression.
- It is easy to calculate.
Examples of Effective Cost per Mille
Here are some examples of effective cost per mille in action:
- An ad campaign costs $10,000 and had 1 million impressions. The effective cost per mille would be $10.
- An ad campaign costs $20,000 and had 2 million impressions. The effective cost per mille would be $10.
- An ad campaign costs $30,000 and had 3 million impressions. The effective cost per mille would be $10.
Conclusion
Effective cost per mille is a popular and reliable way to measure the cost effectiveness of online ad campaigns. It is easy to calculate and can be used to compare the cost of different campaigns. It is an important metric for any online marketer to track and understand.