CPM (Thousand-Contact Price)

CPM stands for thousand-contact price and is a term from the advertising industry. The CPM is a key figure for the price that an advertiser has to pay for a thousand contacts with its advertising.

One contact refers to one person who has seen or heard the advertisement, for example in a TV commercial, on a website or in a newspaper. The CPM is often used to measure and compare the effectiveness of advertising campaigns. The higher the CPM, the more expensive the advertising is per contact.

The CPM can differ depending on the advertising format, advertising medium and target group. For example, an ad in a newspaper may have a different CPM than a commercial on television or an online ad on a website.

Example calculation:

Suppose an advertiser wants to run an advertising campaign on a website that has 100,000 visitors per week. The price for the advertising campaign is 1,000 euros per week.

To calculate the CPM, you need to divide the price by the number of contacts (in thousands) and multiply by 1,000:

CPM = (price / contacts) * 1,000.

In this case, the CPM would be as follows:

CPM = (1,000 euros / 100,000 contacts) * 1,000 = 10 euros.

This means that the advertiser would pay 10 euros per thousand contacts (CPM) when placing this advertising campaign on the website.