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"CPM" is an advertising term that stands for: Cost Per Thousand.
"M" is the Roman numeral for 'thousand.'
Here's an example of how it's used:
An email newsletter publisher lists their advertising rates as $50CPM for an ad in their ezine. The list size is 12,500. Divide the list size (12,500) into 1,000... which equals = 12.5. Take 12.5 X $50 means that this ad would cost $625 to insert.
How do you determine what your CPM should be?
Start by checking out your competition. If you don't have any real competition yet, start your CPM out low, in the $5-$-$15-$20-$25CPM, until you Ezine is sold out a few weeks in advance, and then start walking your rate up as you get sold-out.
Another strategy you can try, is to start out high, because it may not be worth it to do a transaction for less than $35CPM or $50CPM, but ultimately, only the market can determine who will pay your rate or ignore you.
Some folks charge more for larger ads, such as 12 line ads, vs. a discount for a 3 or 4 line ad.
Lastly, a good goal to set for yourself, is to be 100% sold out, and then 100% sold out a month in advance. Once you've achieved anything that resembles this, then you can easily justify raising your CPM advertising rates. Many folks let their advertisers know a few weeks in advance to allow them to take advantage of a buy- before-the-rates go up sale, with much success. :)
This Ezine-Tip was submitted By Christopher Knight -- Email List Marketing Expert, author and entrepreneur.
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Ezine-Tips for September 04, 1998
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