CPM is particularly effective for building brand recognition and reaching broad audiences, though it doesn’t guarantee engagement or conversions like performance-based models such as CPC (Cost Per Click) or CPA (Cost Per Acquisition).
CPM stands for "Cost Per Mille" (cost per thousand impressions). It's a common pricing model in advertising that represents the cost to show your ad to 1,000 viewers.
These are average CPMs to help you estimate costs or impressions for your media campaign. CPM can fluctuate based on competition, platform, and ad performance.
CPM stands for “Cost Per Mille,” where “mille” is Latin for thousand. It represents the cost an advertiser pays for one thousand impressions of their ad. For example, if a publisher charges a $5 CPM, you’ll pay $5 for every 1,000 times your ad is displayed.
CPM = (Total Cost / Total Impressions) × 1,000
There’s no universal “good” CPM as rates vary significantly based on:
Generally, more targeted campaigns command higher CPMs. In 2024-2025, average display ad CPMs range from $1-$2 for broad targeting to $15-$30 for specialized, high-value audiences.
Each model shifts different levels of risk between advertisers and publishers. CPM puts more risk on advertisers but guarantees revenue for publishers.
CPM is typically best for:
CPC or CPA might be better when your primary goal is driving specific actions or when you have a very precise conversion goal.
CPM rates often fluctuate due to:
Strategies to optimize CPM include:
More precisely targeted audiences generally command higher CPMs because:
For example, targeting “men 18-65 in the US” will have a lower CPM than targeting “software engineers at Fortune 500 companies who have visited crypto websites in the last 30 days.”
Neither is inherently “better” – it depends on your goals:
The key metric is actually the return on ad spend (ROAS) or cost per acquisition relative to your customer lifetime value.
Viewability (whether ads are actually seen by humans) significantly impacts CPM:
The most influential factors affecting CPM include: