# Thousand contact price

The cost per mille ( CPM ) (also cost per thousand , cost per thousand , Thousand ad impressions ( TAI ) or cost-per-mille ( CPM called)) is a key figure from the media planning . It indicates the amount of money that must be used for an advertising measure (e.g. for TV spots, online advertising or print advertising) in order to reach 1000 people in a target group by visual contact (on the radio, listening contact). In the online area, for example in banner advertising , an ad impression counts as a contact.

## Gross reach, net reach

If the gross reach (including multiple contacts of a person) of a medium is assumed, the CPM is calculated as follows:

${\ displaystyle {\ frac {\ text {Price of the placement}} {\ text {Gross range}}} \ cdot 1000 {\ text {Contacts}} = \ mathrm {TKP}}$

If a person has multiple contact with the advertising message, the net range is used as the basis for a cost-benefit calculation, then depending on the medium, one speaks of a thousand-reader price , thousand-user price or thousand-listener price . In this case, it is assumed that an advertising medium is also read by several people (e.g. a magazine in a waiting room). The calculation in this case is as follows:

${\ displaystyle {\ frac {\ text {Price of the placement}} {\ text {Net range}}} \ cdot 1000 {\ text {User}} = \ mathrm {TNP}}$

## example

A 1/4 page advertisement in the Süddeutsche Zeitung cost 17,000 euros in 2013. The circulation of the newspaper was 400,647 copies in the fourth quarter of 2013. This results in the following calculation for the CPM:

17,000 euros / 400,647 readers × 1000 = CPM = 42.43 euros / 1000 visual contacts

The advertiser paid 42.43 euros for every 1000 visual contacts.

## Differentiation and comparison

With this purely quantitative cost analysis, the quality of the contact (does a person really perceive the message?) As well as that of the medium during the transport of the advertising message are not taken into account. A distinction can also be made between quantitative reach (the number of people who come into contact with the advertising medium ) and qualitative reach (the proportion of the target group in the total readership, viewer or audience).

In contrast, there is a billing of costs according to clicks ( cost-per-click (CPC)). The costs only arise with the click and not with the range.

The thousand-contact price enables a comparison of the advertising material and its costs in the context of media planning . For this purpose, the profitability is measured as the relation of the performance values ​​range and contact intensity to media costs.

## Individual evidence

1. CPM: cost model in media planning on votum.de
2. TKP - thousands of contact prices on monetarisierung.net