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28 July 2013

What is CPM?

The abbreviation CPM is an advertising term that stands for “cost per thousand impressions” and is used to compare the cost of reaching potential customers.

In online advertising, an impression is when an ad is displayed to a person on a webpage. So, if a person is viewing a webpage that has your ad somewhere on it, that counts as one impression.

To calculate the CPM of an advertising campaign, you need to divide the cost by the number of impressions. Here’s an example:

If your one-month advertising campaign cost $200 and had 5,000 impressions, you paid 4 cents per impression. (Calculation: $200/5,000 = $.04)

The M in CPM stands for a thousand impressions. In the example above, you would multiply the cost per single impression by 1,000 to find the cost per thousand impressions:

Calculation: $.04 x 1,000 = $40 per thousand impressions ($40 CPM)

Matt Cobb, an Account Executive at BubbleLife Media, graduated from Texas Tech University with bachelor's degrees in advertising and journalism. He has written articles that have been featured in a variety of publications, including The Daily Toreador, Lubbock Avalanche-Journal, Lubbock Magazine and In addition to writing, Matt is well-versed in the advertising realm, having spent time with an agency in Lubbock and managing client accounts at BubbleLife Media.