How it works
CPM normalizes advertising cost to one thousand impressions. It helps compare placements with different reach, but it does not measure clicks, conversions, or profitability.
Standard formula
campaign cost ÷ impressions × 1,000Worked example
A $500 campaign with 100,000 impressions has a CPM of $5.
Frequently Asked Questions
What does CPM stand for?
It means cost per mille, where mille means one thousand impressions.
Is CPM the same as CPC?
No. CPM uses impressions; CPC uses clicks.
Can CPM be zero?
Yes, when the campaign cost is zero and impressions are positive.
Does a lower CPM guarantee a better campaign?
No. Judge performance with reach quality, clicks, conversions, and business goals.