What is a CPM?

CPM stands for Cost Per Mille and is also known as cost per thousand(CPT). It is a metric used in advertising to measure the cost an advertiser pays for one thousand views or impressions of their advertisement.

More About CPM:

CPM is a standard measurement used in the advertising industry to analyze the cost-effectiveness and efficiency of an advertising campaign.

It is beneficial to advertisers to make them understand how much they will be paying to display their adverts on a website or a social media network.

There are other advertising metrics, like CPC(cost per click), which work differently from CPM.

Social media advertising cost-per-mille (CPM) worldwide from 2nd quarter 2022 to 2nd quarter 2023 (in U.S. dollars)

Social media advertising

CREDITS: Statista


CPC (cost per click) is the amount paid by advertisers for each click on their ads displayed on websites or social media, but CPM(cost per mille) is solely based on the impressions. In CPM, unlike CPC, you need to pay the amount at every 1000 impressions.


Why do you use CPM?

There are several reasons to use CPM:

  • Budgeting: Advertisers can enhance their advertising strategy by planning and budgeting their expenses more efficiently.
  • Reach: CPM is an effective advertising strategy to increase your brand awareness and cater to a larger audience for increasing brand awareness and reaching a wide audience. Since it’s based on impressions, it helps in reaching a wide audience.
  • Predictable Spending: CPM is charged per thousand impressions, providing advertisers with a more predictable and easily controllable spending model than CPC, where costs vary more widely based on user interaction.
  • Benchmarking: Rates of CPM can be used to benchmark the cost-effectiveness of different advertising platforms or media channels.
  • Simplicity: It offers a simple pricing model and ease of budget.

How to use CPM?

To create a successful advertising campaign, follow these steps:

  1. Define your campaign objectives and always mention your campaign objectives, such as sales or brand awareness.
  2. Choose your advertising platforms. There are many platforms to display ads, like Google ads, Facebook, or any other, so choose a platform according to your audience.
  3. Use CPM bidding to pay for impressions, always set up your campaign for CPM bidding, indicating you’re paying for impressions
  4. Target your audience based on demographics and interests.
  5. Continuously track performance and optimize for better ROI.

By following these steps, you can create a well-targeted and cost-effective advertising campaign that delivers the results you need using CPM.

Frequently Asked Questions

How do I calculate my CPM?

To calculate CPM, you divide the total cost of campaigns by the number of impressions, then multiply the result by 1000 which generates the CPM rate.

What is a good cost per mille?

A good CPM is one that aligns with your campaign objective and doesn't put a hole in your pocket by delivering a positive return on your investment. So It is essential to concentrate on the strategies that yield the best outcomes for your unique advertising plan.

What is the high cost per mille?

A high CPM means that your ads don't reach the targeted audience or are shown to those who are not interested.

Manage social media effortlessly.

  • Trial Begins Immediately
  • No CC Required
  • Change Plans Anytime
  • Cancel Anytime

Start Your 14-Day Free Trial