Cost Per Mille (CPM)
Also known as: Cost Per Thousand, Cost Per Mille
CPM (Cost Per Mille) is the cost of one thousand ad impressions. 'Mille' is Latin for thousand. It's the standard pricing model for awareness and reach campaigns.
CPM is used when the objective is visibility rather than immediate clicks — brand awareness, reach, and video views. You pay for eyeballs, not actions.
Because it isolates the cost of being seen, CPM is useful for comparing the relative expense of audiences and placements. A premium, narrowly-targeted audience carries a higher CPM than a broad one.
For performance campaigns, CPM is a building block rather than a goal: CPM combined with CTR determines your effective CPC, which combined with conversion rate determines your cost per acquisition.
Formula
CPM = (Total spend ÷ Impressions) × 1,000
Example
₹15,000 spent for 6,00,000 impressions → CPM = (15,000 ÷ 6,00,000) × 1,000 = ₹25.
Related terms
Cost Per Click (CPC)
CPC (Cost Per Click) is the amount you pay each time someone clicks your ad. It's the core pricing model of search and many social ad platforms.
Click-Through Rate (CTR)
CTR (Click-Through Rate) is the percentage of people who click a link, ad, or search result after seeing it — clicks divided by impressions.
Impressions
An impression is counted each time your content or ad is displayed, regardless of whether it's clicked. It measures how often you were seen, not how many people saw you.
Retargeting
Retargeting is showing ads to people who have already visited your site or engaged with your brand, bringing them back to complete an action.
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