E-commerce Glossary

CPM (Cost Per Mille)

Cost per thousand ad impressions.

CPM indicates the price of 1,000 displays of your ad. Formula: CPM = (Spend / Impressions) x 1,000. A CPM of $12 means 1,000 impressions cost $12. CPM is useful for awareness campaigns and for comparing costs across platforms. A low CPM doesn't guarantee performance: you need to cross-reference it with CTR and CPA to evaluate real profitability.

Related terms

AOV (Average Order Value)Average amount spent per order in your store.See definition ARPU (Average Revenue Per User)Average revenue generated per user over a given period.See definition Blended CACAverage acquisition cost including all marketing channels.See definition Blended ROASOverall return on all advertising spend combined.See definition CAC (Customer Acquisition Cost)Total cost to acquire a new customer.See definition Churn RatePercentage of customers lost over a given period.See definition

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