Definition

Cost per thousand impressions (technically, “cost per mille”).

Information

The CPM model refers to advertising bought on the basis of impression. This is in contrast to the various types of pay-for-performance advertising, whereby payment is only triggered by a mutually agreed upon activity (i.e. click-through, lead, sale).

The total price paid in a CPM deal is calculated by multiplying the CPM rate by the number of CPM units. For example, one million impressions at $10 CPM equals a $10,000 total price.

1,000,000 / 1,000 impressions = 1,000 units
1,000 units X $10 CPM = $10,000 total price

You can still access the Google sheet with calculators and other digital marketing resources here.

Calculators

CPM Calculators – the calculators above, with more in-depth context.

CPM vs. CPC Calculator – useful for Facebook ads and other social ads.

Marketing Calculators – a growing collection of best-in-class calculators.

Articles

How to Uncover Your Competitors’ Ad Strategies with SEMrush Display Advertising
SEMrush (August 22, 2017) sponsored

Facebook Advertising Benchmarks for 2Q17
MarketingProfs (August 31, 2017)

Deciding Between CPM & CPC Bidding on Facebook
PPC Hero (July 27, 2017)

What are the Average Mobile Advertising Rates for Apps?
MobyAffiliates (September 8, 2016)

The High Price of Low-Cost CPMs
HBR.org (August 10, 2016)

What Are Average CPM Rates in 2016?
MonetizePros (March 20, 2016)

Profit Driven PPC Management in Practice: From CPM to Profit Optimization
SEMrush (December 30, 2015) sponsored

Historical Monthly CPM Trends on YouTube
Social Blade (January 28, 2015)

Google Quietly Debuts Viewable Impression CPM Bidding in AdWords
Marketing Land (November 26, 2013)

CPM vs CPC: Which Should You Use For Facebook Ads?
Adweek (September 9, 2010)

Low CPM Rates Sow Discontent Among Publishers, Ad Networks
ClickZ (January 25, 2001)

СPC, CPM, CPA: Which online payment model do you choose?
SEMrush

5 Factors That Determine Your Advertising CPM Rates
andrewchen.co

Video Ad CPM Rates
MonetizePros

Podcast Advertising Rates 2017
AdvertiseCast

Display Benchmarks – wow!
Google Rich Media Gallery

Related Terms

eCPMclick-through rate (CTR), cost-per-action (CPA), cost-per-click (CPC)

view all terms in the Online Advertising glossary or all terms in the Digital Marketing glossary