OOH glossary · Pricing
CPM (cost per thousand)
CPM is the cost to deliver 1,000 impressions: price divided by impressions, times 1,000.
CPM means cost per thousand. The M is the Roman numeral for 1,000. OAAA and Geopath define it as the cost of delivering 1,000 impressions.
CPM lets buyers compare a billboard with TV, radio or online ads. A lower CPM means each impression costs less.
Use impressions, not traffic counts. A traffic count counts cars going by. Impressions estimate the people likely to notice the ad.
Formula
CPM = (cost ÷ impressions) × 1,000
Example
A poster costs $1,400 for four weeks and delivers an estimated 280,000 impressions in that time. CPM = ($1,400 ÷ 280,000) × 1,000 = $5.00.
In Gabie
Scout writes outreach with the exact rate and DOT traffic count on record. It never calls a vehicle count impressions.