CPM (Cost Per Mille)
MetricsDefinition
CPM (Cost Per Mille) is the cost an advertiser pays for 1,000 ad impressions. It is the standard pricing model for brand awareness and display advertising where reach matters more than direct clicks.
CPM is the default buying model for programmatic display, video, and connected TV advertising. It measures cost efficiency of reaching audiences at scale. Lower CPM means reaching more people for the same budget, but impression quality varies by placement and audience.
A low CPM on a low-quality placement is not a bargain. Viewability rates, audience match, and attention metrics determine whether impressions translate into brand lift or wasted budget.
You set a CPM bid or let the platform optimize for the lowest cost per 1,000 impressions. The platform serves your ad and charges based on impressions delivered, regardless of whether users click.
CPM is critical for awareness campaigns where the goal is reach and frequency. It allows you to forecast total campaign costs based on target audience size and plan media budgets around impression volume.
Formula
CPM = (Total Cost / Total Impressions) x 1,000 Related Terms
Related Services
Frequently Asked Questions
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Use CPM for brand awareness campaigns, video views, and top-of-funnel reach where impressions and frequency matter more than direct clicks.
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Averages vary widely: Meta €5–€15, Google Display €2–€6, LinkedIn €25–€60, YouTube €10–€30. Industry and targeting specificity affect pricing.
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CPM charges per 1,000 impressions regardless of clicks. CPC charges only when someone clicks. CPM suits awareness; CPC suits traffic and conversion goals.
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