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Glossary > Cost-per-thousand impressions (CPM)

Cost-per-thousand impressions (CPM)

Cost-per-thousand impressions (CPM) is a digital advertising model where advertisers pay a fixed amount for every 1,000 views (impressions) of their ad. The term CPM stands for cost-per-mille, where “mille” is the Latin word for “thousand”.

This model is primarily used for brand awareness campaigns, focusing on reaching a large audience rather than direct user actions.

CPM helps advertisers assess the cost-effectiveness of their campaigns by measuring the cost to reach a thousand potential customers.

Frequently asked questions
How is CPM calculated? CPM is calculated by dividing the total cost of the Ad campaign by the number of impressions, then multiplying by 1,000.
What is a good CPM rate? A good CPM rate varies by industry and campaign goals, but generally, a lower CPM indicates a more cost-effective reach.
What pricing models does Ocamba support? Ocamba supports CPA, CPC, and CPM pricing models.
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