CPM (Cost Per Mille)

What Is CPM?

CPM (Cost Per Mille, from Latin "mille" meaning thousand) is an advertising pricing model where advertisers pay a set price for every 1,000 times their ad is displayed (impressions). The formula: CPM = (Total Ad Spend ÷ Total Impressions) × 1,000. For example, a $10 CPM means you pay $10 for every 1,000 times your ad is shown. CPM is the standard pricing model for display advertising, programmatic ads, and video pre-roll campaigns.

Why CPM Matters

CPM is ideal for brand awareness campaigns where the goal is maximum visibility rather than direct clicks. It's the primary metric for display and video advertising. Understanding CPM helps compare costs across advertising channels and formats. CPM rates vary dramatically by industry, audience targeting, and ad placement — ranging from $1-2 for broad display to $20-50+ for premium placements or targeted B2B audiences.

CPM vs. CPC vs. CPA

CPM charges per 1,000 views — best for awareness. CPC (Cost Per Click) charges per click — best for traffic. CPA charges per conversion — best for direct response. Choose CPM for top-of-funnel brand building, CPC for driving traffic to content, and CPA for bottom-of-funnel conversions. Most sophisticated marketers use a mix across the funnel.