What is CPM?
CPM stands for Cost Per Mille ("mille" means thousand in Latin). It represents the cost an advertiser pays for one thousand views or impressions of an advertisement. It is the gold standard metric for brand awareness campaigns on platforms like Facebook Ads, TikTok Ads, and Google Display Network.
The CPM Formula
CPM = (Total Ad Spend / Total Impressions) x 1000
For example, if you spend $50 on a Facebook ad and it is viewed 10,000 times, your CPM is $5.00.
Frequently Asked Questions
What does CPM stand for?
CPM stands for Cost Per Mille, where 'mille' is Latin for thousand. It represents the cost an advertiser pays for 1,000 views or impressions of an advertisement.
How is CPM calculated?
The CPM formula is (Total Ad Spend / Total Impressions) x 1,000.