CPM
📚BasicsCPM (Cost Per Mille) is the price for 1,000 ad impressions — billing model for awareness campaigns (Display, YouTube, Shopping).
Aliases: Cost Per Mille · Cost Per Thousand Impressions
What it is
CPM (cost per thousand impressions) is a billing model where you pay for every 1,000 ad impressions, regardless of clicks. It's used when the goal is reach and brand awareness rather than a direct click - typical for Display banners and some YouTube formats like non-skippable and bumper ads.
My take
I only approve a CPM campaign for a client who already has a proven Search or Shopping channel producing conversions - CPM measures visibility, not sales, and without that first channel I have nothing to compare reach against.
Example
A Display campaign gets 50,000 impressions for 50 EUR spent - CPM = (50 / 50,000) x 1,000 = 1.00 EUR. On YouTube that range runs wider in practice, roughly 2 to 5 EUR per thousand impressions for non-skippable and bumper formats.
Related terms