Advertising

CPM

Cost Per Mille — the cost per 1,000 ad impressions.

Definition

Cost Per Mille (CPM) — also called Cost Per Thousand — is an advertising pricing model where advertisers pay a set price for every 1,000 impressions their ad receives, regardless of whether users click or engage. CPM is common in display advertising, social media awareness campaigns, and programmatic advertising.

Why CPM Matters

CPM campaigns are ideal for brand awareness goals where reach and frequency matter more than direct response. Understanding CPM helps marketers compare the cost efficiency of different media channels and allocate budgets effectively.

Real-World Example

A CPM of $5 means you pay $5 for 1,000 ad views. A campaign that runs 500,000 impressions at $5 CPM costs $2,500 total.

CPM FAQs

When should I use CPM instead of CPC?

Use CPM when your goal is brand awareness and you want maximum reach. Use CPC when you want measurable actions and direct response.