What Is CPM?
CPM means cost per mille, or cost per 1,000 impressions. It is commonly used to compare the cost of reaching audiences across display, social, video and other advertising channels.
How to Calculate CPM
If you spend $500 for 100,000 impressions, your CPM is $5.00.
CPM Example
A campaign that spends $500 and delivers 100,000 impressions has a $5 CPM. If your CPM is $5 and your budget is $500, you can estimate about 100,000 impressions.
CPM vs CPC
CPM measures what you pay for exposure, while CPC measures what you pay when someone clicks. CPM is useful for reach and awareness; CPC is often more useful when clicks are the immediate objective.
When Should You Use CPM?
Use CPM when impressions and reach matter, when comparing media costs across channels, or when planning how much budget is needed to deliver a target number of impressions.
Frequently Asked Questions
What does CPM mean?
CPM means cost per mille, or the cost to deliver 1,000 advertising impressions.
How is CPM calculated?
Divide advertising cost by impressions and multiply the result by 1,000.
What is a good CPM?
A good CPM depends on audience, channel, geography, placement and campaign objective. Compare CPM with your own historical performance and downstream results.
What is the difference between CPM and CPC?
CPM prices exposure per 1,000 impressions, while CPC measures cost per click.
How many impressions will my budget generate?
Divide your budget by CPM and multiply by 1,000 to estimate impressions.