Cost Per Thousand CPT

Posted in Marketing and Strategy Terms, Total Reads: 2908
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Definition: Cost Per Thousand CPT

Cost Per Thousand (CPT) is a marketing metric used to calculate the cost to reach one thousand people or households via a given advertising outlet or medium. It is abbreviated as CPM where M stands for Roman numeral for 1000. It is a widely used metric by the marketers to calculate the efficiency of a campaign across various media channels (e.g. Television, print media, Internet). It does not provide any analysis by itself and is primarily used for budgeting by the media planners.


Another metric that is commonly used to calculate the media efficiency is Cost per point (CPP) or Gross rating points (GRPS).


Formula: CPM = Cost *1000/ target audience


Example: If an advertisement publisher charges $50 CPM, it means that an advertiser must pay $50 for every 1000 impressions of its advertisement.


If a website charges CPM of $100 and guarantees advertiser 500,000 impressions then it will charge $(100*500) i.e. $ 50,000 to the advertiser.


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