What is CPM?
Cost Per Mille (CPM) refers to the cost for 1,000 impressions of an advertisement. "Mille" is Latin for 1,000. Formula: CPM = (Ad Cost / Impressions) × 1,000. Example: €500 for 100,000 impressions = CPM of €5. CPM is mainly used in display advertising, social media ads, and video advertising, while search engine advertising typically uses CPC (Cost Per Click). Typical CPM values: Facebook €5-15, LinkedIn €25-50, Google Display €1-5. CPM is particularly suitable for brand awareness campaigns where visibility is more important than immediate conversions.
Key Points
- Price per 1,000 impressions
- Mille = Latin for 1,000
- Mainly for display/video ads
- Ideal for brand awareness
- LinkedIn more expensive than Facebook
- Don't confuse with CPC
Practical Example
“Our YouTube campaign has a €12 CPM - cheaper than TV advertising with comparable reach.”
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