Skip to main content

What is CPM?

Definition and meaning of CPM:

kost puhr myl / kost puhr thau·znd vyooz

Cost per mile or cost per 1,000 views (CPM) is the amount you (as an advertiser) pay to show your ad to 1,000 people.

For example:

$10 CPM – means you’re paying $10 for every 1,000 people who see your ad. If you spend $100, you will reach 10,000 people.

CPM is a popular digital advertising model. It’s great when your goal is for people to see your ads (ex., brand awareness). It helps you measure how money-effective your ad campaign is based on how many people see your ads.

What does the CPM model do?

CPM is often less expensive than CPC (cost per click) or CPA (cost per action). It guarantees people see your ads but doesn’t guarantee they will click on them or take action.

We’re all bombarded with ads daily, so our brains learned to block ads. We see them but do not acknowledge them. The CPM model doesn’t bring direct sales but could be great for retargeting/remarketing and brand awareness campaigns.

CPM can be a great way to compare the costs of different advertising platforms.


People also searched for

Want to learn marketing jargon?

We send daily emails with new marketing words.