Digital Gurus

CPM (cost per mille)

Cost per mille is the price of 1,000 impressions of your ad. Mille is Latin for thousand.

Reviewed by Chris Day, COO Last reviewed

2% clicked

4.2% enquired

Impressions
12,000
Clicks
240
Enquiries
10
CPM
£25 per 1,000 impressions
CPC
£1.25 per click
CPA
£30 per enquiry

All three come from the same £300 of spend. What changes is which moment you pay for.

The same campaign priced three ways.

What it means for your advertising

A single impression costs a fraction of a penny, so platforms quote the price per thousand. You'll see CPM most on social channels, where ads are often bought to be seen rather than clicked.

CPM = cost ÷ (impressions ÷ 1,000). A low CPM means you're reaching people cheaply. Whether that's worth it depends on how many of them click and convert.

An example

Java Roasters' £300 bought 12,000 impressions. 12,000 ÷ 1,000 = 12, and £300 ÷ 12 = £25, so the CPM was £25.

Java Roasters is a fictional business, and its figures are illustrative.

How we handle it

We use CPM to compare what it costs to reach people on different channels, and judge your campaign by the enquiries it brings. More on Facebook & Instagram advertising.

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