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CPM / CPI – Cost-per-Mille / Cost-per-Impression

Definition updated on November 2023

What are CPM and CPI (Cost-per-Mille / Cost-per-Impression) and how are they used in digital advertising?

Refers to the cost an advertiser pays for one thousand views or impressions of an online advertisement. The term "mille" is Latin for thousand. Unlike CPC (Cost-per-Click) where the advertiser pays for each click on the ad, with CPM, they pay for every thousand times the ad is displayed, regardless of whether it's clicked on. For sneaker resellers, understanding CPM/CPI is crucial when budgeting and strategizing for online advertising. It helps them determine the reach of their advertising dollars. If a sneaker reseller chooses a CPM advertising model, they would pay a set amount for every thousand times their ad appears on a platform, such as Facebook or a website. This model is beneficial for creating brand awareness or showcasing a new sneaker release, as the primary goal is to get the ad in front of as many eyes as possible. However, it's essential to monitor the effectiveness of these impressions. A high number of impressions (views) might sound beneficial, but if they're not leading to engagement or sales, adjustments may be needed. For sneaker resellers, this could involve tweaking the ad's design, its targeting criteria, or the platforms it's displayed on. In short, CPM/CPI gives sneaker resellers a metric to understand the cost of visibility and brand exposure in the online advertising landscape.

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