CPM (Cost Per Thousand)

Definition

The price you pay to display an ad to 1,000 people. The 'M' comes from the Roman numeral for 1,000 (mille), because advertisers love making simple concepts unnecessarily complicated.

Example Usage

Our Facebook display ads are running at a $15 CPM, which is reasonable for the finance sector.

Origin

Traditional print and broadcast advertising, inherited by digital advertising

Fun Fact

CPM varies wildly by industry and season; luxury goods might have a $50+ CPM while niche blogs might be $2-5

Source: Interactive Advertising Bureau (IAB) standards

Related Terms

Intermediate

share of voice

Your brand's percentage of the total conversation or advertising in your category compared to competitors. Basically measuring who's yelling the loudest in a crowded room.

📣 Marketing / Advertising

Advanced

incrementality

The measure of whether your marketing actually caused additional sales or just took credit for purchases that would've happened anyway. It's the uncomfortable question that keeps attribution models honest and marketers defensive.

📣 Marketing / Advertising

Intermediate

Freemium Model

A business model where you offer a free version to get people hooked, then charge them for features they suddenly realize they need.

📣 Marketing / Advertising

Beginner

funnel

The marketing visualization showing how thousands of potential customers magically transform into a handful of actual buyers, shaped like an inverted cone of broken dreams. Each stage represents another opportunity for prospects to ghost your business entirely. Sales teams love drawing these; conversion rates love destroying the optimism they represent.

📣 Marketing / Advertising

Beginner

billboard test

The principle that your key message should be clear and compelling enough to be understood if displayed on a billboard for only a few seconds. If you can't explain it while driving 65 mph, it's too complicated.

📣 Marketing / Advertising

Advanced

incrementality testing

An experimental method to measure whether your marketing actually caused an outcome or if it would have happened anyway. It's the uncomfortable question every CMO avoids: did we waste our money?

📣 Marketing / Advertising

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