What is CPM used for in planning?

• A. Predicting click-through rate.
• B. Cost per mille is used to compare efficiency across media channels by cost per 1000 impressions.
• C. Measuring video completion rate.
• D. Determining audience sentiment.

Answer: (B)

In planning, CPM is a pricing metric that helps you compare how much different channels cost to reach audiences. It stands for cost per mille, with “mille” meaning thousand impressions. By expressing cost per 1,000 ad impressions, you can evaluate media options on a like-for-like basis, even if the channels price differently. This lets you allocate budget more efficiently, estimating how many impressions you’ll get for a given spend and choosing placements that maximize reach for your target audience. It’s a cost-based comparison tool, not a measure of performance like click-through rate, video completion, or audience sentiment.