CPM (Cost Per Mille) is a digital advertising pricing model that measures how much an advertiser pays for 1,000 ad impressions. The word mille comes from Latin and means thousand, making CPM a standard metric for measuring brand visibility and reach.
In simple terms:
👉 CPM = the cost of showing an ad 1,000 times
CPM is commonly used in display advertising, video ads, and brand awareness campaigns where exposure matters more than immediate clicks or conversions.
With CPM advertising, advertisers pay based on the number of times their ad is shown, regardless of whether users click on it or take action.
The basic formula is:
CPM = (Total Ad Spend ÷ Total Impressions) × 1,000
For example, if you spend $10 on an ad that gets 5,000 impressions, your CPM is $2. Lower CPMs typically mean cheaper reach, but higher CPMs can be justified when targeting premium audiences or high-impact placements.
CPM is especially valuable for campaigns focused on visibility, reach, and brand awareness. It helps marketers:
Because CPM is not dependent on clicks or conversions, it’s ideal for top-of-funnel marketing strategies.
