Terms

CPM

What is CPM?

CPM, or Cost per Mille, is a pricing model used in digital marketing that represents the average cost a company pays for 1,000 advertisement impressions. An impression occurs each time a consumer views an advertisement, providing a measure of the ad's reach. CPM is primarily used in campaigns focused on brand awareness, allowing advertisers to measure and compare the cost of ad campaigns across different platforms and media, making it an essential tool for planning and optimizing advertising budgets.

Understanding CPM Calculation

CPM is primarily used for campaigns aimed at enhancing brand awareness rather than direct response advertising. It is calculated by dividing the total cost of an advertising campaign by the number of impressions (in thousands). For example, if a campaign costs $100 and generates 50,000 impressions, the CPM would be $2.00.

This pricing model benefits advertisers looking to achieve high exposure at controlled costs, particularly useful in the initial phases of marketing campaigns to build awareness and customer familiarity with a brand or product.

Types of CPM Models

  • Traditional CPM: Advertisers pay for every thousand impressions, focusing on brand awareness and reach. This model is commonly used in Google Ads and Facebook campaigns.
  • Viewable CPM (vCPM): Advertisers are charged only for ads that users actually see, ensuring better visibility and engagement. This model addresses the limitations of traditional CPM, such as overcounting impressions and ad fraud.

Importance of CPM in Sales

CPM plays a significant role in sales by building brand awareness and serving as a top-of-the-funnel strategy. By focusing on impressions, CPM campaigns can reach a broad audience at a lower cost, laying the groundwork for more targeted advertising efforts. This approach indirectly improves sales performance by familiarizing potential customers with a brand or product, leading to increased engagement and, eventually, sales.

Moreover, CPM can increase sales team efficiency by providing a cost-effective method for gaining impressions, serving as a diagnostic tool for ad campaigns, and creating a larger pool of potential leads for sales teams to engage with.

CPM vs. Alternative Metrics

CPM, CPC (Cost per Click), and CPA (Cost per Action) are three common pricing models in digital marketing, each with its own advantages and disadvantages. CPM focuses on impressions, making it ideal for brand awareness campaigns, while CPC and CPA prioritize clicks and specific user actions, respectively, making them more suitable for campaigns with clear conversion goals.

Other terms

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CPQ software

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CPQ software

Ideal Customer Profile

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Ideal Customer Profile

Sales Development Representative (SDR)

Learn about sales development representative, including roles and responsibilities of an SDR, key skills for successful SDRs, and pathways to becoming an SDR.

Sales Development Representative (SDR)

Hadoop

Learn about Hadoop, including understanding Hadoop components, core functions of Hadoop, applications of Hadoop in sales, & Hadoop best practices.

Hadoop

X-Sell

Learn about X-sell, including benefits of X-selling, strategies for successful X-selling, & X-sell vs. up-sell: understanding the difference.

X-Sell

Sales Process

Learn about sales process, including designing your sales process, key components of effective sales processes, sales process vs. sales methodology.

Sales Process

Win/Loss Analysis

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Win/Loss Analysis

Hybrid Sales Model

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Hybrid Sales Model

Enterprise

Learn about enterprise, including defining enterprise, key components of an enterprise, & enterprise vs. small business differences.

Enterprise

Scrum

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Scrum

Content Management System

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Content Management System

Inbound Lead Generation

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Inbound Lead Generation

Data Enrichment

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Data Enrichment

Sales Prospecting Software

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Sales Prospecting Software

No Spam

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No Spam

Account Click Through Rate

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Account Click Through Rate

Revenue Operations (RevOps)

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Revenue Operations (RevOps)

Programmatic Display Campaign

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Programmatic Display Campaign

Sales Cycle

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Sales Cycle

Content Syndication

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Content Syndication

Loyalty Programs

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Loyalty Programs

Custom Metadata Types

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Custom Metadata Types

Sales Development

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Sales Development

Data Encryption

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Data Encryption

Net New Business

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Net New Business

Competitive Landscape

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Competitive Landscape

Dynamic Segment

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Dynamic Segment

Lead Generation Software

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Lead Generation Software

B2B Buyer Intent Data

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B2B Buyer Intent Data

Buyer’s Remorse

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Buyer’s Remorse

Account-Based Marketing

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Account-Based Marketing

Gamification

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Gamification

On-premise CRM

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On-premise CRM

B2B Intent Data Providers

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B2B Intent Data Providers

B2B Data Enrichment

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B2B Data Enrichment

Data Mining

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Data Mining

Single Page Applications

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Single Page Applications

Sales Team Management

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Sales Team Management

Lead Management

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Lead Management

Performance Plan

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Performance Plan

Closing Ratio

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Closing Ratio

Microservices

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Microservices

Marketing Analytics

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Marketing Analytics

Progressive Web Apps

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Progressive Web Apps

Unit Economics

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Unit Economics

Email Deliverability Rate

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Email Deliverability Rate

Conversion Path

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Conversion Path

Simple Object Access Protocol Application Programming Interface

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Simple Object Access Protocol Application Programming Interface

Omnichannel Marketing

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Omnichannel Marketing

Return on Marketing Investment

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Return on Marketing Investment

Purchase Buying Stage

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Purchase Buying Stage

Operational CRM

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Operational CRM

Account Management

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Account Management

Average Selling Price

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Average Selling Price

Software as a Service

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Software as a Service

Account-Based Marketing Software

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Account-Based Marketing Software

Multi-threading

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Multi-threading

Buyer Journey

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Buyer Journey

Ad-hoc Reporting

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Ad-hoc Reporting

Market Intelligence

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Market Intelligence

Clustering

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Clustering

80/20 Rule

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80/20 Rule

Brag Book

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Brag Book

Load Balancing

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Load Balancing

Outbound Sales

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Outbound Sales

Subscription Models

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Subscription Models

Marketing Qualified Lead (MQL)

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Marketing Qualified Lead (MQL)

B2B Leads

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B2B Leads

Closed Question

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Closed Question

ETL

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ETL

Average Customer Life

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Average Customer Life

Sales Champion

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Sales Champion

Buyer Intent Data

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Buyer Intent Data

Branded Keywords

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Branded Keywords

Total Audience Measurement

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Total Audience Measurement

WordPress

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WordPress

GTM

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GTM

B2B Marketing Attribution

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B2B Marketing Attribution

CSS

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CSS

Soft Sell

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Soft Sell

Stress Testing

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Stress Testing

MOFU

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MOFU

Single Sign-On (SSO)

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Single Sign-On (SSO)

Multi-Channel Marketing

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Multi-Channel Marketing

ABM Orchestration

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ABM Orchestration

Opportunity Management

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Opportunity Management

Buying Intent

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Buying Intent

Sales Prospecting Techniques

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Sales Prospecting Techniques

Behavioral Analytics

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Behavioral Analytics

Email Cadence

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Email Cadence

Cold Emailing

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Cold Emailing

Churn

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Churn

Marketing Automation Platform

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Marketing Automation Platform

Sales Quota

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Sales Quota

SFDC

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SFDC

Tire-Kicker

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Tire-Kicker

Digital Contracts

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Digital Contracts

Zero-Based Budgeting (ZBB)

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Zero-Based Budgeting (ZBB)

Yield Management

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Yield Management

Return on Investment (ROI)

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Return on Investment (ROI)
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