What Is Cost Per Mille (CPM)?

CPM stands for Cost Per Thousand in online ads. It shows how much you pay to have your ad seen by 1,000 people. The word “mille” means “thousand” in Latin. CPM helps you compare the costs of different ad campaigns and plan your advertising budget.

Cost Per Mille (CPM) Formula

To calculate CPM, use this formula: CPM = (Total cost of the ad / Total number of views) x 1,000

For example, if a company spends $10,000 on an ad that gets 500,000 views, you would calculate it like this: CPM = ($10,000 / 500,000) x 1,000 = $20

So, in this case, it costs $20 for every 1,000 views of the ad.