What is CPM?
CPM stands for Cost Per Mille — "mille" being Latin for thousand. It's the price an advertiser pays for one thousand ad impressions. CPM is one of the most common pricing models in digital advertising, used across display ads, video ads, programmatic campaigns, and social media.
The CPM formula
There are three variables. Know any two and you can calculate the third:
CPM = (Total Cost ÷ Total Impressions) × 1,000
Total Cost = (CPM ÷ 1,000) × Total Impressions
Total Impressions = (Total Cost ÷ CPM) × 1,000
What is a good CPM?
CPM varies widely by industry, platform, and targeting. As a rough benchmark: display ads typically run $1–$5 CPM, social media $5–$15, and premium video or highly targeted placements $15–$50+. The "best" CPM depends on your campaign goals — a lower CPM isn't always better if the audience quality is poor.
Frequently asked questions
What does CPM stand for?
CPM stands for Cost Per Mille (mille = Latin for thousand). It represents the cost of 1,000 ad impressions.
How do I calculate CPM?
Divide your total ad cost by the number of impressions, then multiply by 1,000. Or just use the calculator above — enter your total cost and impressions and it does it for you.
What's the difference between CPM and CPC?
CPM charges per 1,000 impressions regardless of clicks — good for brand awareness. CPC (cost per click) charges only when someone clicks your ad — better for direct response campaigns.
Is a lower CPM always better?
Not necessarily. A low CPM on a low-quality audience may deliver worse results than a higher CPM on a highly targeted, engaged audience. Always evaluate CPM alongside metrics like CTR and conversion rate.
What is a typical CPM on Google, Facebook, or YouTube?
Google Display Network averages $1–$3 CPM. Facebook/Instagram runs $5–$15. YouTube pre-roll is typically $9–$15. These vary significantly by industry, season, and targeting.