What does Cost per Mille (CPM) measure?

Cost per Mille (CPM) specifically measures the price an advertiser pays for every 1,000 impressions served. This metric is significant in digital advertising because it helps advertisers understand the cost of reaching a large audience. Advertisers often use CPM when they are focused more on brand visibility and exposure rather than direct conversions, as it allows them to evaluate the efficiency of their ad spend in reaching potential customers.

This metric is particularly relevant in environments where impressions are prioritized, such as display advertising or video ads. Understanding CPM aids in comparing the cost-effectiveness of various campaigns and platforms, allowing marketers to optimize their budget allocation for maximum reach.

The other options do not align with what CPM represents. While the total cost of a digital marketing campaign, the cost per lead generated, and the average cost of clicks per ad are all important metrics in their own right, none of them specifically define the concept of CPM, which is focused solely on delivered impressions.