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

CPM, CPC, CPA & CTR and more at the online advertising calculators page at marketingdiscounts.io.



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

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

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Articles

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