Understanding CPM in digital advertising
CPM, Cost Per Mille (thousand), is the standard pricing model for brand awareness, display, video, and programmatic advertising. It measures how much you pay per 1,000 ad impressions delivered.
CPM ($) = (Total Campaign Cost ÷ Total Impressions) × 1,000. If you spent $2,500 on a campaign that delivered 500,000 impressions, your CPM = ($2,500 / 500,000) × 1,000 = $5.
CPM campaigns are bought either directly (publisher direct deals at a fixed CPM rate) or via programmatic auctions where CPM fluctuates in real time. Use this calculator alongside your ad CTR and CPC data for complete campaign analysis.