What is CPM in email marketing? (Definition)

Cost Per Mile (CPM) is defined as the cost of sending 1,000 emails. It is a pricing model that is used by email marketing service providers to determine how much money users pay per a thousand emails sent.  

Example of Email CPM: Lewis sends 10,000 emails to his subscribers and he is charged $100 by Email Marketing Company X. Therefore, Company X’s CMP rate is $10. 

CPM in email marketing is calculated as; Number of emails sent÷1000=CPM 

For Lewis’s case, it will be: 10,000÷100=$10 

 Email Marketing Service and CPM 

Most email marketing platforms like Convertkit, Mailchimp, Aweber, Drip, ActiveCampaign do not calculate the cost of usage based on the CPM model. They charge their fees based on the number of contacts (subscribers) that you have. For instance, Mailchimp’s lowest-paid plan costs $9.99 for 500 contacts allows you to send up to 500k emails.  

On the other hand, Email Delivery services like Sendgrid, Mailjet, and Mailgun charge according to the number of emails sent per month. This, therefore, makes it easy to calculate CPM. 

 CPM model of pricing is mostly used by advertising platforms like Google Ads, Facebook Ads.  

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