Paid Media

Cost Per Mille(CPM)

The cost per 1,000 ad impressions.

Cost Per Mille (or Cost Per Thousand) is the price for 1,000 ad impressions. CPM is the standard pricing model for awareness-focused advertising — display, video, programmatic, and some social platforms — where the goal is reach rather than direct response.

CPM varies by audience targeting, ad format, and competition. Highly targeted B2B LinkedIn ads can cost $100+ CPM; programmatic display can be $1-5 CPM. The right CPM depends on the audience you're reaching — paying $50 CPM to reach Fortune 500 CMOs is cheap; paying $5 CPM to reach random eyeballs is expensive.

Formula

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

Example

Spend $500 to get 100,000 impressions. CPM = ($500 / 100,000) × 1,000 = $5.

Frequently asked questions

When to use CPM vs CPC pricing?

CPM for awareness and brand campaigns. CPC for direct-response and lead generation. Some platforms (like Facebook) charge CPM but optimize for clicks — meaning your effective CPC depends on the ad's CTR.