Performance

CPM (Cost Per Thousand)

CPM is a pricing model where advertisers pay a set rate for every 1,000 impressions their ad receives, regardless of clicks or conversions.

Definition

Cost Per Thousand (CPM, from the Latin “mille”) is the standard unit for pricing ad reach across TV, OOH, and digital display — letting buyers compare cost-efficiency across formats.

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Why It Matters

CPM is the standard way to compare the cost-efficiency of reach across different media channels and buys.

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Real-World Example

Media Planning

Media planners use CPM to compare a billboard campaign against a programmatic display buy on a like-for-like reach basis, even though the formats are completely different.

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How It Connects

CPM underpins media planning and buying decisions, budget allocation, and channel comparison.