CPM Advertising (Cost Per Mille) is a digital advertising model where you pay a set price for every 1,000 times your ad is shown, regardless of whether it’s clicked or not.
CPM stands for Cost Per Mille, with “mille” being Latin for 1,000. It’s a way to price ad impressions — the number of times your ad is displayed to users.
For example, if a website charges a CPM of $4, you pay $4 every time your ad is shown 1,000 times.
Why Use CPM Advertising?
CPM is commonly used when the goal is brand awareness — to get your ad seen by as many people as possible, not necessarily to drive clicks or sales right away.
Benefits of CPM:
- 👁️ Increased visibility: More people see your brand or message.
- 💰 Predictable pricing: You know the cost in advance per 1,000 impressions.
- 📊 Useful for awareness campaigns: Ideal for reaching large audiences.
- 🧠 Supports brand recall: Repeated exposure helps users remember your brand.
How CPM Works (Step-by-Step)
- You choose a platform or website to display your ad (e.g., Amazon, Facebook, or a blog).
- Set your CPM bid — how much you’re willing to pay per 1,000 impressions.
- Your ad is shown to users on their screens.
- You are charged each time the ad reaches 1,000 views, no matter if it gets clicked.
CPM vs. CPC: What’s the Difference?
- CPM (Cost Per Mille): Pay for views (impressions).
- CPC (Cost Per Click): Pay only when someone clicks your ad.
Choose CPM if your goal is visibility. Choose CPC if your goal is traffic or conversions.
Example in Real Life
You’re launching a new product. You create an ad and run it with a $5 CPM. If your ad is shown 10,000 times, you’ll pay $50 — even if no one clicks. But thousands saw your brand.
Should You Use CPM?
Use CPM if you:
- Want to introduce your brand to a wide audience.
- Are focused on visibility and impressions.
- Run display ads, video ads, or banner campaigns.
If you’re more focused on conversions (like form submissions or sales), other models like CPC might be more effective.