Stukent Marketing Certification Practice Test

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What does CPM measure in advertising?

Cost per twenty clicks
Cost per one thousand visitors
Cost per page view
Cost per engagement

The correct answer is: Cost per one thousand visitors

CPM, or Cost Per Mille, specifically measures the cost of advertising per one thousand impressions or views. In this context, the term "mille" refers to the Latin word for thousand. Advertisers use CPM to evaluate the cost-effectiveness of their display advertising campaigns, allowing them to compare the relative costs of buying ads across different platforms. By calculating how much they need to pay to reach a thousand viewers, marketers can make informed decisions about budgeting and ad placements to maximize reach and visibility for their campaigns. The other options do not accurately represent what CPM measures. Cost per twenty clicks implies a focus solely on clicks rather than impressions. Cost per page view focuses on the number of views of specific pages rather than the broader metric of impressions. Lastly, cost per engagement pertains to interactions like likes and shares, which is different from measuring simply how many times an ad is viewed. This highlights the unique application of CPM in evaluating broader advertising effectiveness based on exposure rather than direct interactions.