Which statement best describes CPM in media planning?

• A. It measures audience sentiment.
• B. It standardizes costs to compare efficiency across media.
• C. It forecasts future demand.
• D. It tracks creative effectiveness.

Answer: (B)

CPM stands for cost per thousand impressions. It standardizes costs to compare efficiency across media by expressing the price to reach 1,000 people, regardless of the channel. This lets media planners compare how cost-effective different placements are at delivering impressions, whether in digital, TV, or print. You calculate it by dividing the total cost of the buy by the number of impressions, then multiplying by 1,000. CPM focuses on delivery cost efficiency, not on audience sentiment, future demand, or how well the ad’s creative performs. So it’s the best description of standardizing costs to compare efficiency across media.