CPM stands for Cost Per Mille (mille is Latin for thousand). It is the cost an advertiser pays for 1,000 impressions of their ad. CPM is the standard pricing model for display advertising, social media ads, and video campaigns.

How do you calculate CPM?

CPM is calculated by dividing the total ad spend by the total number of impressions, then multiplying by 1,000. Formula: CPM = (Total Ad Spend / Total Impressions) x 1,000. Example: $5,000 spend with 700,000 impressions = $7.14 CPM.

What is a good CPM for ecommerce?

A good CPM for ecommerce varies by platform. Meta averages $9.50, Google Display $4.50, TikTok $8.00, Pinterest $7.00, YouTube $12.00, and Google Search $45.00. Generally, under $10 is good for social and display campaigns.

What is the difference between CPM, CPC, and CPA?

CPM charges per 1,000 impressions (visibility). CPC charges per click (engagement). CPA charges per acquisition/conversion (results). CPM is best for awareness, CPC for traffic, and CPA for performance campaigns.

How can I lower my CPM?

Lower your CPM by improving ad relevance scores, testing multiple creatives, optimizing audience targeting, experimenting with cheaper placements like Stories and Reels, and advertising during off-peak seasons when competition is lower.

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