How the calculation works
CPM = (Ad spend ÷ Impressions) × 1,000
Worked example
If $300 buys 120,000 impressions, CPM is $2.50.
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CPM
$2.5
Average cost for 1,000 recorded impressions.
Frequently asked questions
What does CPM measure?
CPM shows the average cost to deliver 1,000 recorded ad impressions. It is commonly used to compare reach and awareness efficiency.
Is CPM the same as CPC?
No. CPM is based on impressions while CPC is based on clicks.
Can a high CPM still perform well?
Yes. A higher CPM can be acceptable if the audience converts better or produces stronger revenue and lifetime value.