Term · Marketing & analytics
CPM (cost per mille)
CPM — cost per mille, from the Latin for "thousand" — is the cost of one thousand ad impressions.
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Explained
CPM = advertising cost ÷ impressions × 1,000
Where it is used
- Awareness campaigns on social media, video platforms and display networks.
- Comparing the cost of reaching an audience across platforms or periods.
- Buying media directly from publishers.
What drives CPM
- Competition for the audience — CPMs usually rise before holidays and shopping seasons. See marketing calendar for Azerbaijan.
- Audience size and targeting precision.
- Ad quality and engagement signals.
- Placement: some placements are more expensive than others.
Reading CPM correctly
A low CPM means reaching people cheaply, not reaching the right people or getting results. Combine it with:
- reach and frequency — how many unique people saw the ad and how often;
- [CTR](/glossary/ctr) and conversion rates;
- cost per result — lead, sale, sign-up.
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FAQ
Frequently asked questions
Is a lower CPM always better?
No. A cheap impression in the wrong audience is wasted money. Judge by the cost of results.
Why did our CPM rise suddenly?
Seasonal competition, audience fatigue, narrower targeting or lower ad engagement are common causes.