CPM (Cost Per Mille)

CPM is the pillar of impression-based advertising. It answers the fundamental question: how much does it cost me for one thousand pairs of eyes to see my ad?

CPM formula

CPM = (Total Cost / Number of Impressions) × 1000

How to estimate total cost or impressions from CPM

Campaign Cost = (CPM × Impressions) / 1000

Estimated Impressions = (Total Cost / CPM) × 1000

CPM vs CPC vs CPA: Which to choose?

  • CPM (Cost Per Mille): you pay simply for your ad being loaded and displayed. The focus is on reach and exposure.
  • CPC (Cost Per Click): you pay for driving traffic to your site via clicks. The focus is on attracting visitors.
  • CPA (Cost Per Acquisition): you pay strictly for end results, such as purchases or confirmed sign-ups. Visit the CPA Calculator for details.

Keep analysing your campaign performance

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Getting impressions but few clicks? Optimise with the CTR Calculator.

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Add up all costs and revenue to determine overall profitability with the Marketing ROI Calculator.

Frequently Asked Questions about CPM

What is considered a good CPM?

It depends heavily on the channel and industry. Compare your CPMs with industry benchmarks and with real performance (CPA, ROI).

Can I use this calculator for social media or video campaigns?

Yes. The CPM formula is the same regardless of the platform.

Is a high CPM always bad?

Not necessarily. A higher CPM may be justified if the inventory is higher quality and generates better results in metrics like CPA or ROI.