Paid Advertising
Cost Per Mille (CPM)
Cost per mille (CPM) is the price an advertiser pays for one thousand ad impressions. "Mille" is Latin for thousand. It is the standard pricing model for awareness and reach campaigns, where the goal is exposure rather than a specific click or action.
Why it matters
CPM tells you how efficiently you are buying visibility, making it the key cost metric for brand-awareness and reach objectives. Comparing CPM across platforms, audiences, and placements helps you find the cheapest path to eyeballs.
How it is measured
CPM = (total ad spend / total impressions) x 1,000. Example: $200 spend across 50,000 impressions = ($200 / 50,000) x 1,000 = $4 CPM.
Typical benchmarks
CPMs vary widely by platform, audience, and season, commonly ranging from a few dollars to the low tens of dollars; competitive niches and premium placements push them higher.
Frequently asked questions
What is a good CPM?
There is no universal target; it depends on platform, audience, and quarter. Judge CPM relative to your own historical campaigns and to the value of the impressions, not an absolute number. Narrow audiences and high-demand seasons like Q4 raise CPM.
How is CPM different from CPC?
CPM charges per thousand impressions regardless of clicks, so it suits awareness goals. CPC charges only when someone clicks, aligning cost with traffic. The same campaign can be reported in both, but you are billed under one pricing model.
Why did my CPM go up?
Common causes include increased auction competition, narrower targeting, seasonal demand spikes, low ad relevance or quality, and high frequency that fatigues a small audience. Broadening targeting or refreshing creative often brings CPM back down.