What does $20 CPM mean?

A $20 CPM means you pay $20 for every 1,000 impressions (ad views). For a $1,000 budget at $20 CPM, you'd get 50,000 impressions. Higher CPMs are typical for premium placements, targeted audiences, or competitive industries.

What is a good CPM rate?

It depends on the platform and industry. Google Display averages $2-3, Facebook $7-8, YouTube $9-10, and LinkedIn $6-7. Premium placements like CTV can be $30-50+. Compare your CPM to platform benchmarks in our calculator.

CPM vs CPC: Which is better?

CPM is best for brand awareness when you want maximum visibility. CPC (Cost Per Click) is better for direct response when you want actions. Many advertisers use CPM for top-of-funnel and CPC for bottom-of-funnel campaigns.

How to lower your CPM?

Improve ad relevance scores, target broader audiences initially, test different placements, run campaigns during off-peak times, use high-quality creative, and A/B test ad formats. Better engagement often leads to lower CPMs.

eCPM (effective CPM) is a publisher metric showing revenue per 1,000 impressions across different ad types. It helps publishers compare revenue from CPM, CPC, and CPA ads on a common basis. Formula: eCPM = (Total Earnings ÷ Impressions) × 1000.

vCPM (viewable CPM) only counts impressions where the ad was actually viewable—typically 50% of pixels visible for 1 second (display) or 2 seconds (video). It's more accurate than standard CPM since you only pay for seen ads.

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CPM Calculator

Calculate CPM, total ad cost, or impressions for your campaigns. Includes platform benchmarks for YouTube, Facebook, Google Ads, TikTok, and more.

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Avg CPM: $7.19Avg CTR: 0.9%

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How to Calculate CPM for Ad Campaigns

CPM (Cost Per Mille) measures what you pay per 1,000 ad impressions. Our free CPM calculator instantly computes your cost per thousand, total budget, or impressions needed. Compare your CPM against platform benchmarks for YouTube, Facebook, Google Display, TikTok, LinkedIn, and more.

What Is CPM in Advertising?

CPM stands for Cost Per Mille (Latin for thousand). It's the standard metric for measuring display advertising costs. If a CPM is $5, you pay $5 for every 1,000 times your ad is shown. CPM helps advertisers compare costs across platforms and plan budgets effectively.

CPM Formula

CPM = (Total Cost ÷ Impressions) × 1000

Why Calculate CPM?

Budget Planning

Know exactly how much your campaign will cost based on target impressions.

Platform Comparison

Compare advertising costs across Google, Facebook, YouTube, and other platforms.

Campaign Efficiency

Identify if your CPM is competitive or if you're overpaying for impressions.

ROI Analysis

Combine with CTR and conversion data to calculate true advertising ROI.

Negotiate Better Rates

Use benchmark data to negotiate with ad networks and publishers.

How to Use the CPM Calculator

Common Use Cases

Display Advertising

Calculate costs for Google Display Network, programmatic, and banner ad campaigns.

Social Media Ads

Plan Facebook, Instagram, TikTok, and LinkedIn advertising budgets.

Video Advertising

Estimate YouTube pre-roll, mid-roll, and bumper ad costs.

Podcast Sponsorships

Calculate costs for podcast ad placements based on download numbers.

Connected TV (CTV)

Plan streaming TV and OTT advertising campaigns.

Media Buying

Compare publisher rates and negotiate better CPM deals.

Frequently Asked Questions

CPM = (Total Cost ÷ Total Impressions) × 1000. For example, if you spend $500 for 100,000 impressions: ($500 ÷ 100,000) × 1000 = $5 CPM. This means you pay $5 for every 1,000 times your ad is displayed.

What Is CPM in Advertising?

CPM Formula

CPM = (Total Cost ÷ Impressions) × 1000