Calculate the cost per thousand impressions for your display advertising campaigns.
Fill in any two fields to calculate the third.
CPM stands for Cost Per Mille (thousand). It represents the cost an advertiser pays for 1,000 ad impressions. CPM is commonly used for display, video, and social media advertising.
Formula: CPM = (Total Cost / Total Impressions) x 1,000
CPM and CPC serve different goals. CPM (cost per thousand impressions) is the right model when your objective is reach and visibility — brand awareness campaigns, product launches, and top-of-funnel advertising where you want as many people as possible to see your message. You pay for exposure regardless of clicks. CPC (cost per click), by contrast, is better for direct-response campaigns where you only want to pay for engaged users who click through. If your aim is to be remembered, CPM usually wins; if your aim is immediate action, CPC is often more cost-effective. Compare the two with our CPC calculator.
The same CPM figure means different things depending on which side of the ad you're on. For advertisers, CPM is a cost — how much you pay to show ads 1,000 times, and a number you want to keep low while reaching the right audience. For publishers, CPM is revenue — how much you earn each time your site serves 1,000 ad impressions, and a number you want to maximize. Publishers often track the closely related metric RPM (revenue per mille); see our RPM calculator for that perspective.
Publishers can lift their effective CPM by improving viewability (making sure ads are actually seen), using a mix of ad formats, enabling header bidding to let multiple ad exchanges compete for each impression, and creating content in high-value niches. Advertisers, meanwhile, lower their CPM by sharpening targeting, improving creative relevance, and avoiding oversaturated placements. In both cases, the goal is the same: more value from every thousand impressions.
Divide the total cost by the number of impressions, then multiply by 1,000. If you spent $200 for 50,000 impressions, your CPM is ($200 ÷ 50,000) × 1,000 = $4. The calculator above can also solve for cost or impressions when you know the other figures.
It varies by platform and audience. Google Display averages $0.50–$4, Facebook and Instagram $5–$15, YouTube $4–$10, and LinkedIn $6–$12 or more. A "good" CPM is one that delivers your target audience efficiently relative to the value they bring.
CPM charges per 1,000 impressions whether or not anyone clicks, while CPC charges only when someone clicks. CPM suits brand-awareness goals; CPC suits direct-response goals where clicks and conversions matter most.
No. CPM is the cost advertisers pay per 1,000 impressions, while RPM is the revenue a publisher earns per 1,000 page views. RPM is always lower than the underlying CPM because the ad network takes a share of the revenue.
Advertiser demand fluctuates with the calendar. CPMs typically peak in the fourth quarter during the holiday shopping season and drop in January when many advertisers pause campaigns and reset budgets.