What does RPM measure in digital advertising?

RPM, or Revenue Per Mille, measures the revenue generated per 1,000 impressions of an advertisement. This metric is essential for advertisers and publishers as it helps them understand how effectively their ads are performing in terms of revenue generation. By calculating RPM, advertisers can gauge the efficiency of their advertising campaigns or the performance of different placements, which aids in budgeting and optimization.

Understanding RPM allows marketers to compare the effectiveness of different advertising channels or strategies with a standardized metric, making it easier to make data-driven decisions. Since RPM captures revenue in relation to the number of impressions—a critical factor in digital advertising—it offers valuable insights into both performance and potential profitability.