What is CPM Digital Marketing?

The cost-per-thousand-impression, or CPM, is a measure of how much you pay for each thousand ad impressions. It's usually calculated by dividing the cost by the number of impressions. CPM is commonly used in campaigns that aim to reach thousands of people.

This is a good overview of how it works, what kinds of campaigns it can be used in, and how it leads to the most profitable results. In addition, we'll talk about how it relates to digital marketing as well as how it fits into overall company marketing strategies.

CPM = (cost impressions) 1000

  • The cost per thousand, or CPM, is the marketing term used to describe the amount that an advertiser pays for every thousand impressions of web page ads.

  • A metric that measures the number of engagements or views an ad has is called an impression.

  • One of the most common methods used to calculate the cost of online ads is the CPM. Other methods include the cost per acquisition and the cost per click.

  • The various disadvantages of using the CPM are duplicate views, ad fraud, and the failure of ads to load.

How Does CPM Work in Digital Marketing?

A lot of companies are familiar with the concept of a CPM, which is a type of online marketing metric that involves paying for the views of an advertisement. It's commonly used in various forms of marketing, such as online advertising and media selection. One of the most common platforms that companies use is Google Ads.

Some display networks also offer a pricing structure that allows companies to bid on ads. Facebook also commonly has a similar structure. Even if a campaign targets different metrics, it can still utilize a CPM.

Cost-per-thousand impressions is a different type of metric that measures the level of awareness that a company has about its brand. Unlike a CPC, it takes into account the high level of awareness that a company has about its brand.

How is CPM Related to Digital Marketing?

There are many elements to consider when it comes to digital marketing, such as low awareness of a brand or company. Having a strong CPM strategy can help boost efforts to the next step. If a company doesn’t have a defined niche market, where can customers come from?

CPM strategies can help raise awareness and attract more potential customers. This type of awareness serves as a good advertisement for a particular type of solution.

A company that has developed a new type of pen might launch a campaign using CPM on multiple websites. The goal of the campaign is to raise awareness of this new product, as many people use ballpoints. After people have seen the ad, the company can then run more targeted ads to appeal to specific customer groups.

One way to think about it is that a CPM strategy is a top-of-the-funnel approach. This strategy focuses on capturing the attention of a wide audience and can also rely on other tactics to carry on.

What Are the Benefits of CPM Advertising?

Compared to other forms of advertising, CPM marketing is often cheaper. However, it is important to note that the price that you pay depends on where you're placing your ads. For instance, if you want to appear on a popular website or with a larger group of people, you might have to bid more. Social media platforms like Facebook can help you target your audience. With a CPM campaign, you can generate awareness quickly and easily.

CPM pricing is predictable compared to CPV. With a dynamic CPM, you are more exposed to risk. The main advantage of this is that you can achieve more views per dollar, but it is also a risk that you will have to optimize. Following are some of the top reasons why CPM campaigns can be helpful −

Improve credibility  Getting the right message across to the right audience is very important for online businesses to improve their credibility. CPM campaigns can help them establish themselves as a credible brand.

Offer highly relevant leads  CPM ads allow companies to reach out to customers who are most relevant to their business. This eliminates the need for them to reach out to everyone and generates thousands of potential leads for new ventures.

Generate industry buzz  CPM campaigns can generate industry buzz by having high-quality content. This can help boost the conversation around the brand and encourage more conversions and traffic.

CPM vs. CPA vs. CPC

One of the most common ways to price website ads is through the "cost per click" model. This is where the advertiser pays a fee for every click that a website visitor makes. The other model is known as pay-per-click, or PPC. The CPA is where the advertiser only gets paid once a purchase is made following the ad's click.

For some ad campaigns, the cost-per-click model is the best option. It allows the advertiser to reach their target market and increase brand awareness. In this case, the click-through rate (Ctr) is less important than the exposure to a high-traffic website.

CPM advertising is commonly used by website publishers, as it allows them to earn a commission for displaying ads. However, since it is relatively low, a website needs to have robust traffic to make money from this type of advertising. On the other hand, social media advertising is more lucrative. For instance, in 2021, the average cost of social media advertising on Instagram and Facebook will be almost $9.


The foundation for successful CPM marketing is threefold. Understanding the various facets of the CPM is very important to ensuring your success. This includes the definition of the metric, how it relates to your company's strategy, and how it can affect your lead generation. A separate budget for this area is also important to ensure that you are on track with your overall marketing strategy. It will allow you to plan for the next steps in the process. Without these three pillars in place, it will be very difficult to see the success of your campaigns.

Updated on: 23-Mar-2023


Kickstart Your Career

Get certified by completing the course

Get Started