CPM stands for Cost Per Mille, a metric used in advertising to measure the cost of reaching 1,000 viewers or users. It helps advertisers understand the cost efficiency of their campaigns.

By quantifying the expense associated with delivering a thousand impressions, CPM enables advertisers to compare costs across various channels, both traditional and digital. This versatility makes it a valuable tool for optimizing budget allocation and maximizing campaign impact.

In the context of digital advertising, platforms like Google and Facebook incorporate CPM in their ad pricing models. Advertisers on Google Ads may use CPM to understand the cost of a thousand ad impressions, while Facebook Ads employs CPM to determine costs related to reaching a thousand users. This integration of CPM allows advertisers to strategically manage their budgets and evaluate the effectiveness of their online campaigns on these prominent platforms.