What does CPM stand for in advertising?

In advertising, CPM stands for "Cost per thousand." This term is commonly used to denote the pricing models for advertising, particularly in online advertising. The concept behind CPM is straightforward: it represents the cost an advertiser pays for one thousand impressions of their advertisement. The use of "thousand" in the terminology is derived from the Latin word "mille," which means one thousand, hence the abbreviation 'CPM' where "M" represents "mille."

This measurement is crucial for advertisers because it allows them to understand the cost-effectiveness of their advertising spend based on the volume of impressions received. The CPM model is widely used in display advertising, where understanding how much one is paying for exposure is essential for budgeting and campaign strategy.

Other options, while they may sound plausible, do not accurately represent the CPM concept. For example, "Cost per message" could refer to a very different form of pricing that isn’t standardized in the same way. "Cost per million" would incorrectly suggest that the metrics are based on millions rather than thousands, and "Cost per methodology" is vague and does not have any recognized significance in advertising. Thus, understanding that CPM specifically refers to "Cost per thousand" is vital for anyone involved in digital advertising campaigns.