Advertising and Public Relations · TEE · practice

Cost per thousand: what is in the denominator?

Optional numerical practice

Extra drills; no claim that these exact questions or allocated marks appeared in TEE

Definition. CPM (cost per mille) or CPT in these notes expresses the cost of 1,000 specified exposure opportunities. “Mille” means thousand, not million.

\text{CPM}=\frac{\text{cost}}{\text{impressions}}\times1000LaTeX: \text{CPM}=\frac{\text{cost}}{\text{impressions}}\times1000

If the question supplies a publication audience rather than measured ad impressions, describe the result as cost per thousand audience opportunities under that assumption. For a target CPM, use target-audience impressions rather than all impressions. Always identify which cost and audience are being compared.

Practice question. Explain cost per thousand and one limitation of using it for media selection. [2 practice marks]

Answer

Cost per thousand divides the advertising cost by the number of specified exposure opportunities and multiplies by 1,000. It makes differently sized media options comparable on delivery cost. However, a lower CPM does not prove better targeting, attention, creative suitability or conversion.