Cost Per Mille (CPM)

Definition:
Cost Per Mille (CPM), also known as cost per thousand impressions, is the amount an advertiser pays for 1,000 views of their ad.

Why it matters:
CPM is a standard pricing model in display, video, and programmatic advertising. It helps advertisers understand the cost of reaching large audiences.

Formula:
CPM = (Total Cost / Total Impressions) × 1,000

Best practices:

• Focus on viewability to ensure impressions are seen

• Compare CPM to CTR and conversion metrics for effectiveness

• Avoid low-quality placements that inflate impressions without engagement