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faq-cpm

slug: faq-cpm · status: draft · score: 80% · 1 versions

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Content

Common questions answered

What is CPM in advertising?

CPM stands for Cost Per Mille (thousand impressions). It's the price you pay for your ad to be shown 1,000 times. If you pay $25 CPM and spend $100, your ad will be shown approximately 4,000 times. CPM is the standard pricing model for TV and display advertising.

What is a good CPM for advertising?

CPM varies widely by platform and targeting. Display ads average $2-5 CPM. Social media ranges from $5-15 CPM. TV advertising typically runs $15-35 CPM. "Good" depends on your audience quality and conversion rates rather than just the number itself.

How do you calculate advertising CPM?

CPM equals (Total Cost / Total Impressions) × 1,000. If you spent $500 for 20,000 impressions, your CPM is ($500 / 20,000) × 1,000 = $25. Most advertising platforms calculate and display CPM automatically in your dashboard.

Is lower CPM always better?

Not necessarily. Cheaper impressions often mean lower-quality audiences or less impactful placements. A $25 CPM on premium TV reaching your ideal customers typically outperforms a $5 CPM on low-quality websites with untargeted audiences. Focus on cost per result, not just CPM.

Version history

VersionWhenSummary
v16/20/2026, 3:11:54 AMmigration import