What does 'cost-per-thousand' (CPT) measure in digital advertising?

Cost-per-thousand (CPT), often referred to as CPM (cost per mille), specifically measures the cost incurred for serving 1,000 ad impressions. This metric is crucial in digital advertising as it enables advertisers to gauge the efficiency of their ad expenditure against the volume of ads shown to users. By focusing on impressions rather than clicks or conversions, CPT allows advertisers to understand how much they are spending to reach a wide audience, providing insight into the potential visibility of their advertisements.

While strategies for determining the effectiveness of budgets are important in digital advertising, they encompass a broader scope than just cost-per-thousand metrics. The click-through rate (CTR) focuses on the ratio of users who click on an ad after viewing it, measuring engagement rather than the cost associated with impressions. Additionally, although pricing methodologies for print media may share some similarities with digital pricing structures, CPM as a term is predominantly associated with digital ad placements, making the association with print media less relevant in this context.