Cost per thousand (CPM)

What is the cost per thousand (CPM)?

Cost per thousand (CPM) is the price you pay for every 1,000 ad views (also called impressions). It’s often used in campaigns focused on brand awareness. CPM is also known as cost per mille.

Rates vary depending on the platform. Social media channels usually charge different CPMs than PPC networks.

How does CPM work?

CPM is based on impressions-the number of times your ad is shown to people, not how many clicks on it. It’s useful for reaching large audiences and boosting visibility, even if no one clicks.

To measure success, look at your click-through rate (CTR)-the percentage of people who saw the ad and clicked. But CTR isn’t the only metric that matters. Even ads that get no clicks can still build brand awareness and drive future traffic.

How to calculate CPM?

Use this formula:

CPM = (Total Ad Spend / Number of Impressions) × 1,000

Example:
If you spent $500 and got 100,000 impressions:
CPM = (500 / 100,000) × 1,000 = $5.00

CPM in digital marketing

CPM is a common pricing model in digital advertising. It’s good for promoting new products or getting your brand in front of more people.

It’s often used in campaigns that aim to:

• Build awareness
• Reach broad audiences
• Share brand messages at scale

CPM works best when your goal is exposure, not clicks or conversions.

Also Read:

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• Average Production Time Definition‍
• What is custom support?