What Is CPM in Advertising? Definition | PlaceBased Media

Written By Cody Cagnina

CPM

CPM, or cost per thousand, is the price an advertiser pays to deliver one thousand impressions. ("M" is the Roman numeral for 1,000.) It is the standard pricing and comparison metric across both out-of-home and digital advertising, calculated as total cost divided by impressions, multiplied by 1,000.

In out-of-home, CPMs vary by a factor of ten or more across venue types. A community-center poster might run around $5 CPM, while a premium high-frequency screen in a major-market specialty clinic can run $50 CPM or higher. The drivers are venue and audience desirability, market size (top-10 DMAs typically cost 2-3x smaller markets), format (digital generally prices above static), and verification (audited inventory prices above unaudited). The right benchmark is never the category average — it is the CPM for the specific audience you are trying to reach.

Related terms: impressions (https://placebased.media/glossary/impressions-ooh)

Reach and frequency (https://placebased.media/glossary/reach-frequency)

OOH (https://placebased.media/glossary/ooh).

Tool: OOH CPM Calculator (https://placebased.media/blog/cpm-calculator).

Cody Cagnina

Cody Cagnina is an experienced expert in public health marketing with over 15 years of professional experience. His specialty is creating impactful Out-of-Home (OOH) advertising and Digital-Out-of-Home (DOOH) advertising campaigns that resonate with community audiences. He works with the top public health organizations such as the Centers for Disease Control and Prevention (CDC), the Department of Health and Human Services (HHS), the Food and Drug Administration (FDA), and numerous others. Cody's strategic vision and creative execution have significantly contributed to raising public awareness of crucial health issues, effectively leveraging the power of marketing to foster healthier communities. His commitment to excellence and profound industry knowledge make him a pioneer in public health advocacy and education through marketing.

http://placebased.media
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Reach and Frequency in Advertising: Definition | PlaceBased