CPM (Cost Per Mille / Thousand Impressions)
CPM is the cost to deliver 1,000 ad impressions, regardless of clicks. It's the standard pricing unit for display, video, social, and brand campaigns where reach is the primary goal.
What it is
Mille is Latin for thousand. CPM is the rate you pay per 1,000 ad views, not per click. It's the default model for awareness-focused channels — Display, YouTube, Connected TV, much of Meta's reach campaigns, and out-of-home digital.
How to calculate
CPM = (Total ad spend / Total impressions) × 1,000.
Example: $2,000 spend / 400,000 impressions × 1,000 = $5 CPM.
Why it matters
CPM lets you compare reach-channel pricing apples-to-apples. A $40 CPM on prime-time CTV vs a $8 CPM on Meta video can both be efficient depending on audience quality and conversion downstream. CPM rising over time also signals audience saturation or auction pressure.
Frequently asked questions
Why is my CPM so high on Meta?
Common causes: narrow audience (under 1M), seasonal competition (Q4 retail), poor creative engagement (Meta charges more for lower-relevance creative), or you're in a high-CPM placement (Reels vs Stories vs Feed).
Should I optimize for CPM or CPC?
Match to goal. Top-of-funnel awareness: optimize for reach/CPM. Mid-funnel: optimize for landing page views / link clicks. Bottom: optimize for conversions and ignore CPM.
How do CPM benchmarks compare across platforms?
Wildly variable. Rough mid-2026 ranges: Meta $8–$30, TikTok $4–$15, YouTube $10–$40, LinkedIn $30–$150, Connected TV $25–$60.
