Lingo for the Layman [Marketing]

Hello and Happy Monday!

I’ve got a quick bite on the most misinterpreted and EXTREMELY important-to-understand aspects of marketing.  The difference between CBSA and DMA and how it effects your pocket!

First and most important is CPM is ‘Cost Per Thousand’, I know, not very intuitive unless you look at it from it’s Latin origin where mīlle means thousand.  Anyway, It refers to how many dollars you have to spend to reach 1,000 sets of eyes.

So in OOH, you’ll typically get a CPM from $3-$6 and that’s as good as it gets, I mean think of that… you spend $5 for some coco-whipped-fat-ulta-spacious-perfect color-latte-McDrink at a coffee shop and for that same $5 you could have reached 1,000 sets of eyes with your brand.  Pretty cool.

Some 8th Grade Math to help you understand:


Take the Impressions of the media (total eyes on your ad): 588,435 as an example

Round it to the thousand, so 588 in this example.

Divide the cost by that 588, so if it cost you $1250 to reach those 588k then the CPM = $2.13

So you can see how total impressions change your CPM greatly so what ad-reps do is take the largest impression number than can find and present that to you.  The majority of the time that is the DMA, not the CBSA and all that means is how far of an area your market extends too.  It’s really pretty simple, the DMA goes farther outside of your city than the CBSA and therefore accounting for the consumers who may travel into the city from 20 miles out vs. 10 miles.

Bottom Line: Ask your rep if they’re measuring the DMA or CBSA in their CPM calculation, maybe the DMA is the right number for you or maybe it’s not.  Have a conversation with them about it or ask me on Twitter: @MyBillboardGuy or Facebook: My Billboard Guy

Have an outstanding week.





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