CPM stands for 'Cost Per Mille' (Mille is Latin for thousand). It represents the cost an advertiser pays for every 1,000 views or impressions of an advertisement.

How is CPM calculated?

The formula for CPM is: (Total Cost / Total Impressions) x 1,000. For example, if you spend $500 for 100,000 impressions, your CPM is ($500 / 100,000) x 1,000 = $5.00.

A 'good' CPM varies widely by industry and platform. Social media ads might have a CPM of $5-$10, while premium display ads could be $10-$30. Lower isn't always better; higher CPM often means higher quality traffic.

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CPM Calculator

Planning an ad campaign? Use this calculator to determine your Cost Per Mille (thousand impressions) and optimize your marketing budget effectively.

Reviewed by David Chen, CFA | Last Updated: November 2025

Total Cost ($)

Impressions

CPM (Cost Per 1,000 Impressions)

$5.00

Understanding CPM in Advertising

CPM is one of the most common metrics in digital advertising. It allows marketers to compare the cost-efficiency of different campaigns across various platforms like Facebook, Google Ads, and display networks.

Expert Tip from David Chen, CFA

"Don't just chase the lowest CPM. A $2.00 CPM on a junk website might bring you zero sales, while a $20.00 CPM on a highly targeted industry blog could bring you high-value customers. Always measure CPM alongside conversion metrics like CPA (Cost Per Acquisition)."

How to Calculate CPM

The math is simple but powerful:

                    CPM = (Total Ad Spend / Total Impressions) × 1,000
                

Common Mistake: Confusing CPM with CPC

CPM is what you pay for views (brand awareness). CPC (Cost Per Click) is what you pay for clicks (traffic). If your goal is immediate sales, CPC might be a better metric. If your goal is brand visibility, CPM is king.

CPM Calculator

Understanding CPM in Advertising

Expert Tip from David Chen, CFA

How to Calculate CPM

Common Mistake: Confusing CPM with CPC

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