Question 1

What is CPM in advertising?

Accepted Answer

CPM stands for Cost Per Mille (mille is Latin for thousand). It is the cost of 1,000 ad impressions. A CPM of $10 means you pay $10 every time your ad is displayed 1,000 times. CPM is the standard pricing model for display, social media, and brand awareness campaigns.

Question 2

What is a good CPM?

Accepted Answer

CPM varies by platform and audience. Facebook and Instagram typically range from $5 to $18. Google Display is $2 to $8. LinkedIn runs $25 to $80 due to B2B targeting. A good CPM is one where the cost of impressions leads to enough clicks and conversions to meet your goals.

Question 3

What is the difference between CPM and CPC?

Accepted Answer

CPM charges you per 1,000 impressions regardless of clicks. CPC charges you only when someone clicks your ad. CPM is better for awareness campaigns where reach matters. CPC is better for direct response campaigns where you want clicks to your website.

Question 4

Why does CPM change so much throughout the year?

Accepted Answer

CPM is driven by supply and demand in ad auctions. During Q4 (November and December), more advertisers compete for the same audience, driving CPMs up 30-60%. January and summer tend to have lower CPMs because fewer advertisers are spending aggressively.

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