What is cost per mille (CPM)?

Cost per mille (CPM) is a metric for the cost of reaching one thousand impressions of an advertisement. It is also typically referred to as the “cost per thousand” and is often used in display advertising, where advertisers pay a fixed rate for every thousand times their ad is displayed, regardless of whether it’s clicked on or not.

In social media marketing, CPM is an important measure of the cost efficiency of ad campaigns, particularly for brand awareness and visibility goals. Advertisers bid for ad placements based on CPM, and the platform’s auction system determines the actual cost per thousand impressions based on factors like audience targeting, ad relevance, and competition.

Monitoring CPM allows advertisers to evaluate the effectiveness of their ad spend, compare the cost of reaching different audience segments, and optimize their campaigns to achieve maximum exposure within budget constraints. By managing CPM effectively, advertisers can enhance brand visibility, increase audience reach, and drive engagement on social media platforms.

Learn more about CPM and other paid social media metrics in our 2024 social media benchmarks.