linford
search
Cost per thousand impressions, often shortened to CPM, is an advertising metric that measures the cost of showing an advert one thousand times. The term comes from the Roman numeral for one thousand, which is “M”.
CPM is commonly used in display advertising, video advertising, and brand awareness campaigns where the goal is to reach as many people as possible.
Cost per thousand impressions is calculated by dividing the total advertising cost by the number of impressions, then multiplying the result by one thousand.
For example:
This would produce a CPM of £5.
This means the advertiser paid £5 for every one thousand times the advert was shown.
CPM helps advertisers understand the cost of reaching large audiences. It is especially useful when the objective of a campaign is visibility rather than direct clicks or conversions.
CPM helps businesses:
Lower CPM can allow advertisers to reach more people within the same budget.
CPM is often used in campaigns designed to increase awareness or visibility. In these cases, the main goal is for people to see the advert rather than immediately take action.
Common examples include:
These formats prioritise reach and exposure.
Different pricing models are used depending on the goal of the campaign.
CPC (cost per click) focuses on the cost of generating clicks.
CPA (cost per acquisition) focuses on the cost of generating conversions.
CPM (cost per thousand impressions) focuses on the cost of exposure and reach.
Each metric provides a different perspective on advertising performance.
Many advertising platforms offer CPM-based bidding models. Advertisers can choose this model when their objective is to maximise visibility rather than direct interaction.
By analysing CPM alongside metrics such as impressions, engagement, and conversions, marketers can evaluate how effectively their campaigns reach and influence audiences.
