Understanding cost-per-thousand
Here at Advercado, we have simplified some of the marketing jargon, so you do not have to do all the research when positioning yourself and your business. We also want to help you develop your knowledge so below you will find an explanation on the cost per thousand marketing term and how it can help you identify value.
Cost per thousand (CPT) or cost per mille (CPM) are marketing terms that are used to identify the cost of 1000 advertising impressions delivered by an advertisement. It is calculated by taking the cost of an advertisement and dividing it by the number of impressions the advertisement would have on the audience.
An example would be: We need a better example of this as its 250 for a week, and 5000 listeners a day so 35000 but some are repeat etc.
A radio station charges £250 to reach 5000 listeners. So £250 / 5 = £50 per thousand listeners.
The system is a good way to decide:
- The return on investment (ROI)
- How many potential impressions you can make
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