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Formula
Divide spend by impressions and multiply by 1000 to get CPM.
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Frequently Asked Questions
What is a good CPM?
CPM varies widely by channel, audience, and ad format. Social media CPM ranges from $2 to $15, display ads $1 to $5, and premium placements can exceed $30. Compare within your channel for meaningful benchmarks.
Does CPM reflect conversions?
No. CPM only measures the cost of showing your ad 1,000 times. High impressions with no clicks or conversions can produce a low CPM but poor campaign performance.
How is CPM calculated?
CPM = (total ad spend / total impressions) multiplied by 1,000. For example, $250 spent on 50,000 impressions gives a CPM of $5.00.
When should I optimize for CPM vs CPC?
Optimize for CPM when your goal is brand awareness and reach. Optimize for CPC when your goal is driving traffic and clicks. Different goals require different metrics.
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