CPM, or Cost Per Mille (also known as Cost Per Thousand), is an advertising metric representing the cost an advertiser pays for one thousand views or impressions of an advertisement.
CPM, or Cost Per Mille (also known as Cost Per Thousand), is an advertising metric that represents the cost an advertiser pays for one thousand views or impressions of an advertisement. It is primarily used for campaigns focused on brand awareness and visibility rather than direct clicks or conversions.
For a new boutique hotel, a CPM campaign on a travel website could be effective for introducing its brand to a wide audience, even if users don't click immediately. The goal is to get the hotel's name and imagery in front of many potential guests, building recognition that might lead to future direct bookings or searches.
FAQ
When should a hotel use CPM advertising?
Hotels should use CPM advertising when their primary goal is to increase brand awareness, promote special events, or introduce a new property to a broad audience. It is effective for campaigns where getting the hotel's message seen by as many relevant people as possible is more important than immediate clicks.
How is CPM calculated?
CPM is calculated by dividing the total cost of an advertising campaign by the total number of impressions generated, then multiplying the result by 1,000. The formula is: (Total Ad Spend / Total Impressions) x 1,000 = CPM. This helps advertisers understand the cost efficiency of their ad's visibility.
What is the difference between CPM and CPC?
CPM (Cost Per Mille) focuses on impressions, meaning you pay for every thousand times your ad is shown, making it ideal for brand awareness. CPC (Cost Per Click) focuses on clicks, meaning you pay each time a user clicks your ad, making it better for driving traffic and direct conversions to your hotel website.
Related terms
- CPC (cost per click)
- OAI-SearchBot
- ROAS (return on ad spend)
- Google Hotel Ads
