How it's calculated
CPM = (cost ÷ impressions) × 1000
CPM = cost per 1,000 impressions, cost = total ad spend, impressions = number of ad views. Rearranges to solve for spend or impressions: cost = (impressions ÷ 1000) × CPM.
Worked examples
| Total cost | Impressions | CPM | Note |
|---|---|---|---|
| $500 | 100,000 | $5.00 | Typical display rate |
| $1,200 | 400,000 | $3.00 | Lower cost per reach |
| $750 | 50,000 | $15.00 | Premium placement |
Common questions
What does CPM mean?
CPM is cost per mille, the price for 1,000 ad impressions. Mille is Latin for thousand.
How do I calculate CPM?
Divide total cost by impressions, then multiply by 1,000. Spending $500 for 100,000 impressions is a $5 CPM.