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What is Cost Per Mille in marketing and sales?

CPM is often used as a way to measure the effectiveness of an advertising campaign.

What is Cost Per Mille (CPM)?

Cost Per Mille (CPM) is the cost of an advertising campaign per 1,000 impressions (views) of an advertisement. "Mille" is Latin for "thousand," so CPM tells you exactly how much a campaign costs for every 1,000 times the ad is shown.

 

How is CPM calculated?

CPM is used to measure the cost efficiency of an advertising campaign and to assess its return on investment (ROI). To calculate CPM, follow these steps:

  1. Divide the total cost of the campaign by the total number of impressions.
  2. Multiply the result by 1,000.

Formula: CPM = (Total Campaign Cost ÷ Total Impressions) × 1,000

Example: A campaign costing $1,000 that generates 100,000 impressions has a CPM of $10 — meaning the campaign cost $10 for every 1,000 impressions.

CPM = $1,000 / 100,000 impressions × 1,000 = $10

 

Where is CPM commonly used?

CPM is a standard metric in digital marketing, widely applied in display advertising, programmatic campaigns, and paid media planning. It is important to note that CPM is distinct from pay-per-click (PPC) advertising — with CPM, advertisers pay per 1,000 impressions, whereas with PPC, advertisers pay each time someone clicks on their advertisement.

 

For further guidance on campaign measurement, GTM strategy, or paid media planning, contact the ARISE GTM team.