Cost Per Thousand (CPM)
Date created: Mar 1, 2019 • Last updated: Dec 2, 2020
What is Cost Per Thousand?
Cost Per Thousand (CPM), also called Cost Per Mille, is a marketing term used to describe the price of 1,000 advertisement impressions on an advertiser's webpage. If a website publisher charges $2.00 CPM, that means an advertiser must pay $2.00 for every 1,000 impressions of its ad. The "M" in CPM represents the word "mille," which is Latin for "thousands."
Alternate names: Cost Per Mille, Cost Per Thousand ImpressionsFormula
How to calculate
If an online advertiser pays a website $500 that ultimately generates 150,000 impressions, then the CPM would be $500/150,000 X 1,000 = $3.33. Alternatively, if a website charges $2.00 CPM, an advertiser with a budget of $1,000 per month, will get 500K impressions for their ad each month.
Cost Per Thousand
Start tracking your Cost Per Thousand data
Use Klipfolio PowerMetrics, our free analytics tools, to monitor your data.
Choose one of the following available services to start tracking your Cost Per Thousand instantly.
How does this work?
Follow the steps below in order to get your instant metric
More about this metric
CPM is the most common method for pricing web ads. It's the cost a company has to pay for every 1,000 impressions it gets on a webpage they are advertising for. One impression is equal to a potential customer viewing an ad.
The cost will differ depending on the popularity of the keyword they wish to advertise and the site the advertiser is choosing to advertise on.