Paid MediaMarketing glossary

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

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