CPM
What is CPM?
CPM stands for Cost Per Mille, which is the cost to show your ad 1,000 times.
It’s a common pricing model for display and video ads focused on visibility.
How is CPM calculated?
CPM = (Total Ad Spend ÷ Total Impressions) × 1,000
If you spend $200 and get 50,000 impressions, your CPM is $4.00.
Why is CPM important?
CPM helps measure the cost of brand exposure and is ideal for awareness campaigns.
It tells you how efficiently your ad is reaching people, not how they interact with it.
When should you use CPM?
Use CPM when your goal is to boost visibility, brand recall, or reach large audiences.
It’s best for top-of-funnel campaigns, like product launches or awareness pushes.
What is a good CPM?
A good CPM depends on the platform, audience, and industry.
- Facebook: $5–$12
- YouTube: $10–$30
- Display networks: $1–$5
Always compare against your historical data and campaign goals.
What affects CPM?
Audience targeting, ad quality, competition, placement, and time of year can all impact CPM.
Tighter targeting or high-demand periods can raise your costs.
What’s the difference between CPM and CPC?
CPM charges per 1,000 views; CPC charges per click.
CPM is for reach and awareness, while CPC is for traffic and conversions.
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