Glossary
Paid advertising

CPM (cost per mille)

CPM is the cost of one thousand ad impressions, calculated as spend divided by impressions times 1,000 — the base unit for pricing reach.

Mille is Latin for thousand, so CPM prices exposure in bulk: showing an ad a thousand times. It is the natural metric for awareness and reach campaigns, where being seen by the right audience is the goal.

CPM prices attention, not results. A low CPM feeding a weak click-through rate can produce a worse cost per click than a higher CPM with strong creative, so CPM is best read as one link in the chain that ends at cost per acquisition.

More paid advertising terms