Budgeting is often a difficult task in promotion in part because it is often difficult to tell which promotions will have the best return.

After all, you have to decide on a budget amount and specific tools before you can tell how effective a given promotion might be$.$ Given

this difficulty, companies often rely on outside agencies to provide advice on which promotion tools to use to achieve specific

promotion objectives. Cost per thousand $($CPM$)$ is calculated as a percentage as follows:

Cost per thousand Total cost of promotion $$ number of impressions