What is CPM?
Also known as: Cost Per Mille, Cost Per Thousand Impressions
Cost Per Mille — the cost of buying 1,000 ad impressions. The buying-side equivalent of CPC and CPA.
CPM = (Ad Spend ÷ Impressions) × 1,000The detailed definition
CPM is the platform's pricing unit for the auction — what you pay for the chance to show your ad 1,000 times. It's largely determined by competition: the more advertisers bidding for the same audience, the higher the CPM. Benchmark ranges vary by platform: Meta typically $5–$15, Google Display $1–$5, TikTok $3–$10, premium connected-TV $25–$50. CPM in isolation tells you almost nothing — a high CPM with a great hook rate and conversion rate beats a low CPM that nobody clicks. Use CPM as a sanity check on auction pricing (is competition unusually elevated this week?) rather than as a primary optimization metric.
Frequently asked about CPM
›What's a good CPM?
Highly platform- and audience-dependent. Meta typically $5–$15, Google Display $1–$5, TikTok $3–$10, Snap $2–$8, premium connected TV $25–$50+. CPM trending up week-over-week without a campaign change usually means auction competition increased — common in Q4 retail and around launches in your category.
›Is a lower CPM always better?
No. A $20 CPM that drives a 3% click-through rate to a high-intent audience can outperform a $5 CPM that drives 0.5% CTR to a low-intent audience. CPM matters for the auction; what you do with the impressions (creative, landing page, offer) determines what they're worth.
›How is CPM different from CPC?
CPM is the cost per 1,000 impressions. CPC is the cost per click. CPC = CPM ÷ (CTR × 10). They measure two different points in the funnel: CPM is the auction price; CPC adjusts for how often impressions become clicks.
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