Calculate CPM (Cost Per 1,000 Impressions) — the key metric for ad campaigns, sponsorships, and monetization.
CPM (Cost Per Mille) measures the cost of 1,000 ad impressions. It is the standard pricing metric used across digital advertising — from social media ads to display networks to programmatic buying. The formula is: CPM = (Total Cost ÷ Total Impressions) × 1,000.
For advertisers, CPM tells you how efficiently you are reaching people. For creators and publishers, CPM determines how much revenue each 1,000 views generates through ad placements.
| Platform | Average US CPM | Best For |
|---|---|---|
| LinkedIn Ads | $20 – $50 | B2B, enterprise sales |
| YouTube Pre-Roll | $10 – $30 | Brand awareness, video |
| Instagram Ads | $6 – $15 | E-commerce, lifestyle |
| Facebook Ads | $5 – $15 | Broad targeting, local biz |
| TikTok Ads | $6 – $15 | Gen Z, viral reach |
| Google Display | $2 – $8 | Retargeting, scale |
| Programmatic Display | $2 – $6 | Mass reach, remnant |
Improve ad relevance scores (better creative = lower CPM), target less competitive audiences, test multiple creatives to find winners, run campaigns during off-peak seasons (avoid Q4 holiday spikes), use lookalike audiences, and optimize for engagement to earn algorithmic distribution at no extra cost.
CPM stands for Cost Per Mille (cost per 1,000 impressions). It's the standard metric for pricing display ads, social media ads, and programmatic advertising. Formula: CPM = (Total Cost ÷ Total Impressions) × 1,000. For example, if you spend $500 for 100,000 impressions, your CPM is $5.00.
Average US CPM rates by platform: Facebook/Instagram ads $5–$15, Google Display Network $2–$8, YouTube pre-roll $10–$30, TikTok ads $6–$15, LinkedIn ads $20–$50, programmatic display $2–$6. Niche matters: finance/insurance CPMs can exceed $50, while entertainment may be under $5. Lower CPM = more impressions per dollar.
CPM (Cost Per Mille) is what advertisers PAY per 1,000 impressions. RPM (Revenue Per Mille) is what creators EARN per 1,000 views. RPM is always lower than CPM because the platform takes a cut (YouTube takes 45%, etc.). If an advertiser pays $10 CPM on YouTube, the creator earns roughly $5.50 RPM.