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 goal is visibility, not immediate clicks — brand awareness, reach, video views. You pay for eyeballs, not for actions.

Because it isolates the cost of being seen, CPM is useful for comparing how expensive different audiences and placements are. A premium, narrowly-targeted audience will carry a higher CPM than a broad one.

For performance campaigns, CPM is a building block, not the goal: CPM with CTR gives your effective cost per click, and that with conversion rate gives your cost per customer.

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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