CPM (Cost Per Mille) is an advertising metric that measures the cost an advertiser pays for 1,000 (one thousand) ad impressions. The word "mille" comes from Latin and means one thousand. CPM is one of the 3 primary pricing models in digital advertising, alongside CPC (Cost Per Click) and CPA (Cost Per Action).
Advertisers use CPM to compare the cost efficiency of ad campaigns across platforms like Google Ads, Facebook Ads Manager, and LinkedIn Campaign Manager. A lower CPM means spending less to reach 1,000 people, while a higher CPM often signals premium ad inventory or precise audience targeting.
The CPM pricing model benefits both advertisers and publishers. Advertisers get predictable costs based on reach and impression volume. Publishers earn ad revenue based on traffic volume, regardless of whether users click the ad. This impression-based pricing model is the standard for brand awareness campaigns, display advertising, video advertising, and programmatic advertising.