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What is CPM?

CPM is the cost of showing an ad 1,000 times. It is also a billing model based on impressions.

Cost Per Mille (cost per 1,000 impressions) · Marketing Glossary · Updated

It is often used to compare rates across media in social media ads such as Instagram and YouTube, and in brand awareness ads.

If the goal is to reach more people with the same budget, look at CPM; if the goal is to drive action, look at CPC and CPA.

Formula

CPM = ad spend ÷ impressions × 1,000

Sample If KRW 200,000 in ad spend brought 100,000 impressions, CPM is KRW 2,000.

Related terms

Reach and frequencyCTRBrand MarketingCPC

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