IAB Digital Marketing Media Foundations Certification (DMFC) Practice Test 2025 – Your Comprehensive All-in-One Exam Mastery Guide!

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What does CPM stand for in digital marketing?

Clicks per minute

Cost per thousand

In digital marketing, CPM stands for "Cost per thousand." This metric is used to quantify the cost of an advertisement based on the number of impressions it receives, with "thousand" referring to thousand impressions. Advertisers use CPM to evaluate how much they are spending for every 1,000 times their ad is displayed to users, making it a crucial measurement for budgeting and assessing the performance of ad campaigns.

By focusing on CPM, marketers can determine the efficiency of an ad campaign in reaching a large audience. It's particularly useful for brand awareness campaigns where the primary goal is to maximize visibility rather than immediate clicks or conversions. Understanding CPM helps advertisers make informed decisions about where to allocate their budget and optimize their media buying strategies.

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Campaign performance metric

Cost per marketing

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