Average Cost Per Thousand Impressions or Cost Per Mile / Marketing Terms Average Cost Per Thousand Impressions or Cost Per Mile Also called Cost Per Mille Average cost per thousand impressions, commonly abbreviated as CPM, is a pricing model used in digital advertising to measure how much an advertiser pays for one thousand views, or impressions, of an ad. Unlike cost per click, which charges based on user interaction, CPM focuses on visibility. It is widely used in brand awareness campaigns where the goal is to reach a large audience rather than drive immediate action. For example, if a campaign costs $20 and receives 5,000 impressions, the CPM would be $4.00. CPM is calculated using the following formula: CPM = (Total Cost ÷ Total Impressions) × 1,000 This model is most often used for display ads, video ads, programmatic campaigns and social media promotions. Platforms like Google Display Network, Meta Ads, YouTube and LinkedIn Ads support CPM bidding for advertisers focused on reach and exposure. While CPM guarantees delivery of impressions, it does not guarantee engagement or conversions. For that reason, it is best suited for top-of-funnel campaigns aimed at building brand recognition, launching new products or driving traffic to a new initiative. Marketers use CPM as part of a broader strategy to evaluate cost-efficiency, compare media buys and forecast reach within a set budget. A lower CPM suggests that a campaign is reaching more people for less money, but high impressions alone do not always mean success. To measure effectiveness, teams should track CPM alongside viewability, click-through rates and post-view conversions. When used thoughtfully, CPM can help brands and nonprofits extend their visibility while maintaining control over budget and targeting.