How Cost Per Mille (CPM) Works
CPM equals ad spend divided by impressions, multiplied by 1,000. It reflects the price of distribution before clicks or conversions occur.
A Simple Example
If a campaign spends $500 for 100,000 impressions, its CPM is $5.
Why Cost Per Mille (CPM) Matters
CPM helps separate changes in the price of reach from changes in click-through rate and conversion rate.
Common Misreading
A low CPM can be paired with poor attention or weak buyers. Cheap distribution is only useful when the audience and creative produce business results.
Continue with the practical guide
The glossary gives you the definition. The guide covers the decisions and implementation in more depth.
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