Digital Marketing & Analytics

Basic

Cost Per Mille (CPM)

Cost to reach 1 000 viewers with an ad.

Formula

CPM = \frac{\text{Cost}}{\text{Impressions}} \times 1000

Variables

CPMCost per thousand impressions

\text{Cost}Total ad spend

\text{Impressions}Total impressions served

Example

$150 for 50 000 impressions → CPM = $3.00

Did You Know?

CPM was borrowed from print advertising; 'mille' is Latin for thousand.

marketing cpm advertising cost

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More in Digital Marketing & Analytics

Click-Through Rate

Percentage of ad viewers who click on the ad.

Cost Per Click

Average price paid for each click on an ad.

Cost Per Acquisition

Average cost to acquire one paying customer or conversion.

Return on Ad Spend

Revenue generated for every currency unit spent on advertising.

Conversion Rate

Percentage of visitors who complete a desired action.

Bounce Rate

Percentage of visits where the user left after viewing only one page.