One of the most common measures in advertising is cost per thousand impressions (CPM). The CPM is calculated as follows:
A) CPM = (Advertising cost ($) ÷ Audience size) × 100.
B) CPM = (Frequency ($) ÷ Audience size) × 1,000.
C) CPM = (Frequency ($) ÷ Audience size) × 100.
D) CPM = (Advertising cost ($) ÷ Audience size) × 1,000.
E) CPM = (Advertising cost ($) ÷ Audience size) × 1,000,000.

Question

Quizplus · Accepted Answer

CPM stands for "Cost Per Mille," where "Mille" is Latin for thousand. The correct formula for CPM is (Advertising cost ($) ÷ Audience size) × 1,000, which calculates the cost per thousand impressions.

One of the Most Common Measures in Advertising Is Cost