CPM (Cost Per Mille)
CPM is an advertising metric that represents the cost per 1,000 impressions (views) of an ad, commonly used in display, video, and social media advertising campaigns.
CPM stands for "Cost Per Mille" (mille is Latin for thousand). It represents how much an advertiser pays for every 1,000 times their ad is displayed. If a campaign has a $10 CPM, the advertiser pays $10 for every 1,000 impressions.
CPM rates vary dramatically based on the platform, audience, and ad format. Facebook CPMs average $5-15, LinkedIn CPMs are $20-40 (reflecting a more valuable B2B audience), and premium website placements can range from $10-50+. Video ads generally have higher CPMs than static display ads because they're more engaging.
In practice
- A fashion brand runs a YouTube pre-roll video campaign with a $12 CPM, reaching 500,000 potential customers for $6,000 to launch their new collection
- A B2B software company compares CPMs across platforms: LinkedIn at $35 but with decision-maker targeting vs. Facebook at $8 with broader targeting, choosing LinkedIn for better qualified impressions
- A local restaurant uses Facebook reach campaigns at a $6 CPM to ensure their weekend brunch promotion is seen by 50,000 people in their area
- A real estate developer runs premium display ads on luxury lifestyle websites at a $25 CPM, accepting the higher cost for the quality and relevance of the audience
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