Cost Per Mille (CPM)

What is cost per mille?

Cost per mille (CPM) is a digital advertising metric that shows how much you pay for every 1,000 impressions of your ad. The word “mille” comes from Latin and means “thousand” — so CPM literally stands for “cost per thousand” impressions.

In simple terms, if your ad is shown 10,000 times and you spend $50, your CPM is $5. This pricing model is popular in programmatic advertising, where brands want to maximize their reach and build brand awareness.

Why is CPM important?

CPM is essential for measuring the cost of exposure. Unlike cost per click (CPC) or cost per acquisition (CPA), CPM focuses purely on impressions. This means you’re paying for visibility, not for clicks or conversions.

For brands looking to increase awareness, CPM is a powerful tool. It helps you:

Compare the efficiency of different campaigns and channels
Set clear budgets for reaching large audiences
Measure the cost of brand exposure across digital media

CPM is especially valuable if your goal is to introduce your brand to new audiences or reinforce your message with existing customers.

📖 Learn more about how to track your brand’s reach and impact with Blask’s Brands page.

How does CPM work?

CPM is calculated using a simple formula:

CPM = (Total campaign cost ÷ Total impressions) × 1,000

For example, if you spend $200 on a campaign and get 40,000 impressions, your CPM is $5.

Here’s how the process works step by step:

Set up your campaign: Choose your ad platform and target audience.
Launch your ad: Your ad is shown to users as they browse websites or apps.
Track impressions: Each time your ad loads and is seen, it counts as one impression.
Calculate CPM: Use the formula above to find your cost per thousand impressions.

Types of CPM campaigns

CPM is used across many digital channels, including:

Display advertising: Your banner appears on websites, and you pay per impression.
Social media ads: Platforms like Facebook and Instagram use CPM for brand awareness campaigns.
Video advertising: You pay for every 1,000 video views.
Affiliate marketing: Some networks use CPM to reward publishers for exposure, not just clicks.

Each channel offers unique benefits, but CPM remains a consistent way to measure and compare campaign performance.

📖 For more on how affiliates use these metrics, see How do iGaming affiliates use Blask?

Advantages of the CPM model

Budget control: You know exactly how much you’re spending for every 1,000 impressions.
Broad reach: CPM is ideal for campaigns focused on visibility and brand awareness.
Easy to compare: You can benchmark campaigns across different platforms and publishers.
Predictable costs: CPM makes it easy to forecast your advertising spend.

Best practices for CPM campaigns

Target the right audience: Use audience segmentation to ensure your ads reach the most relevant users.
Test different creatives: Try various ad formats, images, and messages to see what drives the most engagement.
Monitor performance: Track your CPM alongside other metrics like click-through rate (CTR) and cost per lead (CPL).
Optimize for quality: Focus on high-quality placements and avoid low-value impressions.

Common mistakes to avoid

Ignoring ad relevance: Make sure your ads are shown to the right audience to avoid wasted impressions.
Focusing only on CPM: Always consider other metrics like conversions and engagement for a full picture of campaign success.
Overlooking ad fraud: Monitor your campaigns for suspicious activity that could inflate your CPM.

How CPM compares to other metrics

CPM is just one part of the digital marketing toolkit. Here’s how it stacks up against other key metrics:

Metric	What it measures	When to use it
CPM	Cost per 1,000 impressions	Brand awareness, reach
CPC	Cost per click	Traffic, engagement
CPA	Cost per acquisition	Conversions, sales
CTR	Click-through rate	Ad effectiveness, interest

📖 For more on how these metrics work together, see our guide to iGaming KPIs.

Case study: CPM in action

An iGaming brand launches a display ad campaign to promote a new slot game. They spend $1,000 and receive 200,000 impressions, resulting in a CPM of $5. By targeting high-quality gaming sites and using engaging creatives, the campaign achieves strong brand lift and lays the groundwork for future retargeting and performance campaigns.

Conclusion and next steps

Cost per mille is a fundamental metric for any brand looking to build awareness and reach. By focusing on CPM, you can control your budget, compare channels, and maximize your exposure. But remember — CPM is just the start. For best results, combine it with other metrics like CPC, CPA, and CTR to get a complete view of your marketing performance.