The term CPT or cost per thousand refers to the cost per thousand advertising contacts in traditional marketing. In digital marketing, it refers to the cost per thousand impressions.
The CPT is an effective indicator for comparing the prices charged by the media used in media planning. Combined with other criteria such as the impact of the medium, the quality of the location, the quality and affinity of the audience, etc., it makes it possible to effectively choose the media in the media plan. In addition, it allows you to evaluate the profitability of an advertisement.
The formula for calculating the CPT is quite simple. This cost is obtained by dividing the price of the ad by the reach of the ad format and multiplying the result by one thousand.
CPT = 1000 x (ad price/reach)
For example, let’s say a company opts for a €1,000 advertisement. If the chosen advertising medium reaches an average of 100,000 people, the CPT will be €10.
CPT = 1000 x (1000/100000) = 10