CPM (Cost Per Mille, where mille = Latin for 1,000) is the standard pricing unit for digital advertising — it measures how much an advertiser pays for every 1,000 ad impressions served. It's the foundational metric for display advertising, video advertising (YouTube pre-rolls, streaming), social media ads, and programmatic advertising.
The CPM formula: Total Cost = (Impressions ÷ 1,000) × CPM. Rearranging: CPM = (Total Cost ÷ Impressions) × 1,000. If you paid $500 to serve 250,000 impressions, your CPM was $2.00.
Typical CPM ranges by platform and niche (2025): Facebook/Instagram display: $5–$12. Google Display Network: $2–$8. YouTube pre-roll (skippable): $6–$15. LinkedIn: $25–$50 (highest due to professional targeting). Twitter/X: $4–$8. Streaming TV (CTV): $20–$40. High-value niches (finance, insurance, legal) command 2–5× the rates of low-value niches (entertainment, general news).
CPM vs. CPC vs. CPA: CPM pays per impression (best for brand awareness). CPC (Cost Per Click) pays only when someone clicks (better for direct response). CPA (Cost Per Acquisition) pays only when a conversion happens (most efficient for measurable ROI). Smart advertisers match the pricing model to their campaign goal.
For website publishers: Google AdSense reports RPM (Revenue Per Mille) to creators — this is the effective rate you earn per 1,000 page views, which is always lower than the gross CPM because Google takes a cut and not all impressions fill with paid ads.
Viewability is an increasingly important CPM modifier. Industry standards require at least 50% of an ad to be in view for 1 continuous second (display) or 2 seconds (video) to count as a "viewable impression." Higher viewability rates command premium CPMs.
CPM (Cost Per Mille, from Latin 'mille' = thousand) is the standard ad pricing metric. Rearranged: Total Cost = CPM × Impressions ÷ 1,000 · Impressions = Total Cost ÷ CPM × 1,000
Spend $500 · 100,000 impressions
CPM = $5.00
Budget $2,000 · target CPM $10
Impressions = 200,000
YouTube campaign · 50,000 views · CPM $9.68
Cost = $484
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Henry
Founder & Developer, Online Calculator Suite
Henry is the independent creator of Online Calculator Suite, based in Utah. He builds and maintains every calculator on this site and writes the guides, checking formulas against published sources such as the IRS, CDC and NIH. He is not a licensed financial advisor or medical professional, so results are for information only.