Cost Per Mille (CPM)

An advertising pricing model where advertisers pay for every 1,000 impressions (views) of their ad, regardless of whether anyone clicks. 'Mille' is Latin for thousand, hence CPM. This model is common for brand awareness campaigns where the goal is exposure rather than immediate action. CPM rates vary dramatically by platform, audience targeting, and competition, ranging from $1-$50 per thousand impressions. CPM is typically more cost-effective than CPC for building brand recognition but less controllable for direct response marketing since you pay regardless of engagement. Social media and display advertising commonly use CPM pricing.

Why it matters

CPM campaigns work best when you have compelling creative that naturally generates engagement. For new businesses, CPC often provides better ROI, but CPM can be valuable for retargeting audiences already familiar with your brand.