What is CPM?
CPM, or cost per mille, is what an advertiser pays for 1,000 ad impressions. Mille is Latin for thousand. To find it, divide your ad cost by your impressions, then multiply by 1,000.
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How to calculate CPM
Divide your total ad cost by the number of impressions it bought, then multiply by 1,000.
Why CPM matters
CPM shows what it costs to put your ad in front of people. Because it's based on impressions rather than clicks, it's a common way to buy and compare awareness campaigns across display, video, connected TV, and social.
It can also reveal changes in the market. If your CPM rises while your targeting and creative stay the same, competition for that audience may have increased.
When CPM isn't enough
CPM tells you what attention cost, but it can't tell you whether that attention was worth buying. A low CPM can still produce poor results if your ads reach the wrong people.
Use CPM to judge the cost of reach, then look at metrics like click-through rate, cost per acquisition, and return on ad spend to judge the results.
What affects CPM
Your audience, ad placement, location, season, and the number of advertisers competing for the same impressions all affect CPM. On many platforms, ads that people find relevant can also cost less to show.
Disclaimer
This calculator is for informational purposes only, and we don't guarantee the accuracy of its results. You're responsible for verifying any results before relying on them. See our terms of use.
Common questions
What does CPM stand for?
CPM stands for cost per mille. Mille is Latin for thousand, so CPM is the cost of 1,000 ad impressions. You may also see it called cost per thousand.
How do you calculate CPM?
Divide your total ad cost by your total impressions, then multiply by 1,000. For example, $5,000 spent on 250,000 impressions is a $20 CPM.
What is a good CPM?
There's no single good number, because CPM changes with the channel, audience, location, and season. Compare it with your own past campaigns, and judge it alongside the results it produced.
What's the difference between CPM and CPC?
CPM is the price of 1,000 impressions, and CPC is the price of one click. CPM suits campaigns built around reach, while CPC suits campaigns built around getting people to your website.
Does CPM count unique people?
No. An impression is counted each time an ad is shown, so one person can create several. Reach is the metric that counts unique people.
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