CPM — Cost Per Mille
The cost an advertiser pays for one thousand ad impressions.
Definition
Cost Per Mille (CPM) is an advertising pricing model that defines the price paid for 1,000 impressions of an advertisement. "Mille" is the Latin word for thousand. CPM is the standard metric for buying and selling display advertising across digital platforms including Google Display Network, Facebook, Instagram, LinkedIn, and programmatic exchanges. It is primarily used for brand awareness campaigns where reach and visibility are the primary goals rather than clicks or conversions.
Formula
CPM = (Total Campaign Cost ÷ Total Impressions) × 1,000Divide your total ad spend by the number of impressions, then multiply by 1,000.
Example
If you spend $500 on a campaign that delivers 200,000 impressions, your CPM = ($500 ÷ 200,000) × 1,000 = $2.50. You paid $2.50 for every 1,000 people who saw your ad.
Key Points
- CPM measures the cost of visibility, not engagement or action
- Lower CPM means reaching more people for less money
- CPM rates vary widely by platform, industry, and audience
- Best used for brand awareness and reach objectives
- Can be compared across platforms to evaluate media efficiency
Industry Benchmarks
Varies by targeting and season
Reels and Stories trend higher
Rises during Q4 holiday season
Video formats average higher
B2B targeting increases cost
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