Cost per mille (CPM)

What is Cost Per Mille (CPM)? Get the full definition and learn more about the mobile growth realm with Chartboost's glossary.
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What is Cost Per Mille (CPM)?

Cost Per Mille, or CPM for short, is a pricing model, wherein advertisers pay publishers for every 1,000 ad impressions their ads generate. An “impression” is a fancy name for a digital view. In other words, ad campaigns that generate 500 impressions are seen by 500 people.

The CPM pricing model is ideal for brand awareness campaigns because it prioritizes views over clicks, engagements, and every other outcome an advertising campaign can produce.

How to Calculate CPM

To calculate CPM for your ads, simply divide the total amount of money you’ve spent on your campaign by the total number of impressions (views) said campaign generated for you. Then multiply the resulting figure by 1,000. Here’s the formula:

CPM Formula

CPM = (Total Campaign Spend / Total Number of Impressions) x 1,000

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