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CPM stands for Cost per mille, where mille is latin for thousand. Thus it is also known as CPT or Cost per thousand. It is a commonly used term in all advertising channels like Radio, TV, print, online and so on.

It is the cost incurred in showing the advertisement to a thousand people. It is used for benchmarking and calculating relative cost of advertising in a medium. For example,

If the cost of advertisement is $10000 and it reaches 50,000 people then its CPM is calculated as:

CPM = $10000/(50000/1000) = $200