CPM (Cost per thousand impressions) – What is CPM?


CPM is cost per thousand impressions of an ad. That is, the number of times an advertising creative has been shown to a user.

It is a form of payment in online advertising through which a certain amount is paid for every thousand impressions that are made during user visits, regardless of whether they click on the ads or not.  

Normally this form of payment is used in campaigns aimed at creating brand memory or “branding”, since it is not paid based on a specific result as in performance marketing, but rather the aim is simply to impact users. as many times as possible.  

One thousand impressions are taken as a reference for the cost to handle rounder figures, since the cost for a single impression can be excessively low.


How to calculate CPM

It can be calculated in two ways:

CPM = (Cost/Impressions) x 1000

Another possible formula to perform the calculation is:

CPM = (CTR x CPC) x 1000

Marketing channels that pay by CPM


Mainly, it is used for branding campaigns. It is the type of online marketing focused on generating brand recognition and recall. In this type of advertising, the aim is not so much for the immediate result (click) as for users to become familiar with a brand and its values.
The most common formats used and paid for by CPM are:

  • Display Formats:  These are the classic banners.

  • Video ads:  This is the price per thousand views of video creatives. In Google Ads and other networks it is called CPV (Cost Per View).