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CPM (Cost per Mille) Definition
Cost per Mille (CPM), meaning cost per 1,000 impressions, is a pricing model where advertisers pay based on how often their ad is displayed, regardless of clicks or conversions. CPM is standard for brand awareness, display, and programmatic campaigns.
How CPM Works
- Advertisers bid for impressions on platforms like Google Display Network or social media.
- Costs are calculated per 1,000 impressions served.
- CPM depends on audience targeting, placement, and competition.
- Performance is evaluated through impressions, reach, and engagement metrics.
Example of CPM
A brand awareness campaign with a $5 CPM generates 100,000 impressions at a total cost of $500.
Why CPM Matters in Advertising
- Ideal for scaling reach and visibility campaigns
- Enables cost forecasting based on audience size
- Common in display, video, and programmatic environments
- Balances exposure with engagement goals in brand campaigns
