CPM stands for cost per mille, a pricing model in digital advertising where advertisers pay a fixed cost for every thousand impressions of their ad. It's widely used in the programmatic advertising ecosystem, allowing for automatic buying and selling of digital ad inventory.

What does “mille” mean in CPM?

"Mille" means "thousand" in Latin, so CPM indicates the cost per thousand ad impressions on a webpage.

Why is CPM important?

CPM is crucial for campaigns aimed at brand awareness or delivering focused messaging, as it emphasizes the importance of exposure over clicks. It's particularly beneficial for advertisers in niche markets seeking to build brand recognition through targeted exposure.

How do you calculate CPM?

To calculate CPM, divide the total campaign spend by the number of impressions, then multiply that by 1,000. For example, if you paid a publisher $1,500 to serve your ad and that ad received 750,000 impressions, you paid $2 for every 1,000 impressions.

What is an average CPM?

CPM varies considerably depending on geography, platform, and timing, and can be influenced by broader trends. That’s why it’s best to focus on the value of where and when your impressions are served.

What’s the difference between CPM and eCPM?

CPM is used by advertisers to estimate the cost and reach of an ad campaign. eCPM (effective cost per mille), on the other hand, is employed by publishers (the parties that own the ad space) to calculate their effective earnings per thousand impressions. eCPM provides insight into the revenue generated from ad placements.

What’s the difference between CPM and CPC?

CPM and CPC (cost per click) represent two different pricing models in digital advertising. With CPM, advertisers pay for every thousand impressions an ad receives, so the focus is on exposure. With CPC, they pay for each click an ad gets, prioritizing engagement and actions over simple visibility.

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