CPM (Cost Per Mille)
The cost of 1,000 ad impressions, used as the pricing model for display and social media advertising.
Full definition
CPM (Cost Per Mille, where 'mille' is Latin for thousand) is the price paid per 1,000 ad impressions. It is the standard pricing model for brand awareness campaigns, display advertising, and most social media ad platforms (Meta, LinkedIn, TikTok). Unlike CPC, you pay for impressions regardless of whether users click. CPM is most relevant when reach and frequency matter more than direct response. Typical CPMs range from £3–£7 on Facebook/Instagram for broad audiences to £25–£60+ on LinkedIn (due to the high-value B2B targeting). CPM is calculated as: (Total Ad Spend ÷ Total Impressions) × 1,000.
Real-world example
A fashion brand runs a brand awareness video campaign on Instagram with a CPM of £6.20. Their £5,000 budget generates 806,451 impressions.
Related terms
The amount an advertiser pays each time a user clicks on their ad.
Read definitionThe average cost spent on advertising to acquire one customer or conversion.
Read definitionReach is the number of unique users who saw your content; impressions is the total number of times it was displayed.
Read definitionA targeting feature that finds new users who share characteristics with an existing audience of customers or high-value users.
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