February 28, 2024

What is CPM in digital marketing?

CPM or cost per mille is a pricing model in digital marketing that refers to the cost per thousand impressions. In other words, CPM is the price an advertiser pays for every 1,000 times their ad is displayed. CPM pricing model is one of the common pricing models used in digital advertising. This model is based on the number of impressions. Since there is no limit to the number of impressions an advertiser can buy, the CPM model is a way to set a price for a unit of advertisement.

CPM used:

CPM is used as a pricing model because it allows advertisers to control how much they spend on advertising, while still reaching a large audience. The price is usually determined by the type of ad, whether or not a banner ad is involved, and where it is located on the page.

Advertising can be an effective way of generating revenue for a website, and this method is widely used by companies that depend on advertising for their primary source of revenue. The majority of online advertising is done using a pay-per-click (PPC) model, where advertisers pay to have their ad shown to people who have requested specific information. What is CPM in digital marketing? CPM stands for Cost per Mile, and is a metric used in digital marketing to measure the cost of ad impressions.

 CPM calculated:

CPM is calculated by taking the cost of the ad and dividing it by the number of impressions. For example, if an ad costs $5 and it is displayed 1,000 times, the CPM would be $5.CPM is useful in determining how much to spend on an ad, but it doesn’t tell you anything about how effective the ad is. You can test how well your ads are performing by using our new Ads Insights tool. Our Ads Insights tool will help you see how well your ads are performing for any campaign, ad group or keyword. To see how well your ads are performing, you can use the reports provided by Ads Insights.

Benefits of CPM:

CPM is a popular pricing model because it is effective and efficient. CPM allows advertisers to reach a large audience at a low cost. However, CPM can also be problematic because advertisers may not always get the exposure they pay for. In the CPM pricing model, advertisers pay an ad network for an ad space on an advertisement page of a publisher. 

Disadvantages of CPM:

CPM can be a disadvantage for advertisers because they may not always know how many people will see their ad. Additionally, CPM can be a more expensive option for advertisers who want to target a specific audience. The advantage of CPC is that advertisers can better control how much they spend on advertising. Additionally, CPC allows advertisers to target a more specific audience.


CPM is a popular pricing model in digital marketing because it is an effective and efficient way to reach a large audience. However, there are some disadvantages to using CPM, such as the potential for higher costs and less control over the audience that sees the ad.