CPM (Cost Per Mille)
The cost an advertiser pays per one thousand impressions of their advertisement.
CPM, or Cost Per Mille (from the Latin for "thousand"), is the standard pricing model in digital advertising that represents the cost an advertiser pays for one thousand impressions of their advertisement. It is the most common pricing metric for brand awareness campaigns and display advertising, including digital out-of-home and retail media.
In retail media and programmatic DOOH, CPM is used to price in-store screen advertising inventory. The CPM rate varies based on factors including: screen location (high-traffic entrance vs. aisle), audience demographics, time of day, campaign targeting parameters, and the overall quality and scale of the retail media network.
Retail media networks typically command premium CPMs compared to online display advertising because of the high-quality first-party audience data, the proximity to the point of purchase, and the captive, shopping-intent audience. Programmatic buying via RTB allows CPMs to be set dynamically through auction, with advertisers bidding based on the value of each impression to their specific campaign. Research indicates that in-store retail media can deliver CPM uplifts of 30-80% compared to traditional waterfall-based selling.