CPM/CPI
CPM or CPI is frequently used measurement in advertising. CPI or Cost Per Impression is the cost incurred for each prospective customer who views the advertisement, whereas CPM (Cost Per Mile) alternatively known as Cost Per Thousand (CPT) refers to the cost incurred for every thousand prospective customers who view the advertisement. For one thousand views or clicks of an advertisement, advertiser pays this cost.
How CPM is Calculated?
Divide the total number of impressions the ad will make by 1,000. For instance, if your ad would make 10,00,00 impressions, you would divide 10,000 by 1,000 to get 100.
CPM and CPI are especially relevant in the digital advertising landscape, including industries like live video streaming, where reaching a broad audience efficiently is critical. In live video streaming, CPM is an important metric because it enables streaming platforms to measure the effectiveness of their ads and ensure they’re reaching the right audience segments without overspending. This is particularly valuable as live video streaming typically attracts large numbers of viewers simultaneously, making it an ideal environment for CPM-based advertising.
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