What is cost per mille in SAP CRM-ANA-MKT - Marketing Analytics?

SAP Term: cost per mille

• Component: CRM-ANA-MKT

• Component Name: Marketing Analytics

• Description: The price an advertiser pays for every 1,000 impressions served.

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• Key Concepts: 
  Cost per mille (CPM) is a metric used in marketing analytics to measure the cost of an advertisement for every 1,000 impressions. It is calculated by dividing the total cost of an advertisement by the number of impressions it receives. CPM is used to measure the effectiveness of an advertisement and to compare different advertising campaigns.
  
  How to use it: 
  To calculate CPM, divide the total cost of an advertisement by the number of impressions it receives. For example, if an advertisement costs $100 and receives 10,000 impressions, then its CPM would be $10 ($100/10,000). This can be used to compare different advertising campaigns and determine which one is more effective.
  
  Tips & Tricks: 
  When calculating CPM, it is important to consider the quality of the impressions. For example, if an advertisement receives 10,000 impressions but only 1,000 of them are from people who are likely to purchase the product or service being advertised, then the CPM will be higher than if all 10,000 impressions were from potential customers.
  
  Related Information: 
  CPM is often used in conjunction with other metrics such as click-through rate (CTR) and cost per click (CPC). CTR measures the percentage of people who click on an advertisement after seeing it, while CPC measures the cost of each click on an advertisement. Together, these metrics can provide a more comprehensive view of an advertising campaign’s effectiveness.