Cost per Mille (CPM) is the amount an advertiser pays for one thousand impressions of an ad, regardless of clicks.
CPM = (Total ad spend ÷ Impressions) × 1,000
‘Mille’ is Latin for thousand. Spend ₹20,000 for 10,00,000 impressions and your CPM is ₹20. You pay for the ad being shown, not clicked.
CPM suits awareness and reach goals — brand campaigns where being seen by the right audience matters more than an immediate click. For direct response, CPC (pay per click) usually aligns cost with action better.
CPM charges for visibility; CPC charges for clicks. A low CPM with a strong CTR can produce a low effective CPC, so the two are linked. Choose the model that matches the goal: reach (CPM) or response (CPC).
Cost per Mille — mille being Latin for thousand. It is the cost an advertiser pays per one thousand ad impressions.
CPM charges per thousand impressions (you pay for the ad being shown); CPC charges per click (you pay for the action). CPM suits awareness goals, CPC suits direct response.
When your goal is reach and brand awareness rather than immediate clicks — for example, launching a brand or staying top of mind with a target audience.
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