What is CPM (Cost Per Mille)?
CPM shows how much 1,000 ad impressions cost. It is the fundamental pricing model for display and social ads — Meta Ads averages $7-12.
Formula
Example
If you spent $1,500 and received 200,000 impressions, CPM = ($1,500 / 200,000) × 1,000 = $7.50 per thousand impressions.
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Related Terms
CPC (Cost Per Click)
CPC shows how much you pay on average for a single ad click. The e-commerce average is $1.16 on Google Ads and $0.45–1.72 on Meta Ads.
CTR (Click-Through Rate)
CTR shows what percentage of impressions resulted in clicks. Google Search average: 4-6%, Meta Feed: ~1.5%, Display: 0.5-1%.
ROAS
ROAS (Return on Ad Spend) measures how much revenue you earn for every unit of currency spent on ads. Important: this is revenue, not profit.
Remarketing
Remarketing (retargeting) reaches users with ads who already visited your site but did not purchase. These audiences convert 3-5x cheaper than cold traffic.