Stukent Social Media Marketing Certification Practice Test

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What does the acronym CPM stand for?

Cost per million
Cost per mille
Cost per message
Cost per minute

The correct answer is: Cost per mille

The acronym CPM stands for "Cost per mille," which translates to "cost per thousand" in English. This term is widely used in advertising to denote the cost an advertiser pays for one thousand impressions of their ad. This metric is crucial for understanding the efficiency and effectiveness of an advertising campaign, allowing marketers to compare the cost-effectiveness of different media placements. The use of "mille," which is Latin for a thousand, underscores the focus on thousands of impressions rather than millions or single messages, making this terminology particularly relevant in contexts where ad impressions are crucial. Understanding CPM helps businesses evaluate their advertising spend relative to the reach they are obtaining, ultimately assisting in budget allocation decisions and campaign assessments.