CPM stands for cost per thousand impressions and measures how much an advertiser pays to deliver a thousand ad views. It is commonly used in brand awareness and reach-focused campaigns, where visibility matters more than immediate clicks or actions.
A high CPM may reflect premium placement, a highly targeted audience, or seasonal competition, such as holiday-season retail campaigns. Conversely, low CPMs often occur on broad-reach platforms or content placements where competition is lighter.
For example, a global apparel brand may run campaigns at a $5–$20 CPM to build top-of-funnel awareness, while niche B2B campaigns might see higher CPMs due to specialized targeting. CPM helps advertisers gauge cost efficiency for exposure-focused campaigns.
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