Define CPM in media planning.

• A. Cost Per Minute
• B. Cost Per Thousand impressions; the cost to reach 1,000 exposures.
• C. Cost Per Million impressions
• D. Consumer Price Measure

Answer: (B)

In media planning, CPM is the price you pay to reach 1,000 exposures. An impression is counted each time an ad is served to a user. CPM standardizes costs across different media because it focuses on how many people see the ad, not on how long it runs or the format. It’s calculated by dividing the total campaign cost by the number of impressions (in thousands), giving the cost per 1,000 impressions. For example, if you spend $5,000 and gain 2,500,000 impressions, CPM = $5,000 / (2,500,000 / 1,000) = $2.00 per 1,000 impressions. This helps compare the efficiency of TV, online, and print buys on the same scale. The other options don’t fit because they describe time-based pricing (cost per minute), a different scale (cost per million impressions), or a general economic measure (consumer price measure) rather than the advertising-focused metric of cost per thousand impressions.