CPM reflects auction competition for an audience. It rises in festive seasons and around big sales, which is why the same creative and audience can cost far more in October than in February.
Formula
CPM = Ad spend ÷ Impressions × 1,000
Every core ad metric from five numbers: spend, impressions, clicks, conversions and revenue.
Related terms
- CPC (cost per click)CPC is ad spend divided by the number of clicks.
- CTR (click-through rate)CTR is the share of ad impressions that result in a click.
- Ad frequencyFrequency is the average number of times each person in an audience has seen an ad over a period.
Part of the growth marketing glossary by Shiva Sharma.