Cost-per-Mille (CPM) 

Cost per Thousand Contacts (CPC)

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Anyone involved in marketing will sooner or later stumble upon the term Thousand Contact Price (short TKP) (also known as Thousand Price, Thousand Contact Price, or Cost-per-Mille (CPM)). The term primarily appears in Search Engine Advertising (SEA), Social Media Marketing (SMM), or Affiliate Marketing. The meaning of TKP can be simply described as follows: TKP describes the amount of money that must be spent on any advertising measure to reach a total of 1000 people in a target audience.

Table of contents
  • Calculation of the CPM
  • CPC Calculator
  • Advantages of CPM

    • Calculation of the CPM

    The basis for calculating the CPM is the advertising price and the total number of views (or contacts). Each potential customer is defined as a contact. The CPM can be calculated as follows:

    Price of the measure / Gross reach x 1000 contacts = CPM

    Gross reach describes how many contacts were made in total. The reach can also be stated as net reach. This means that it is assumed that the advertising measure is perceived by only one person (and not, for example, seen by three people simultaneously in front of a television) or that multiple contacts with the same person are accounted for.

    CPM Calculator

    Here you can easily calculate the cost per thousand contacts (CPM). For this, enter the total costs of the campaign under “Price of the measure” and the total number of contacts under “Gross reach”. The CPM will be automatically determined from this.

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    Advantages of the CPM

    The CPM helps to plan costs more accurately within online marketing. The costs of an advertisement can be compared across different pages and various channels. On the other hand, the CPM does not say much about the quality of the contact. One does not know whether the contact has resulted in a conversion.

    Do you want to improve your CPM and need support? Then contact us! Do you want to learn more or have your team trained on this topic? Then check out our Analytics seminars.

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