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
Related pages
Free tools
ROAS, break-even ROAS and POAS.
Customer lifetime value and max profitable CAC.
Acquisition cost and LTV:CAC ratio.
Gross margin, net margin and markup.
Max CPA, max CPC and optimal budget.
Average order value, target gap and revenue impact.
Measure your e-commerce metrics automatically
RFM segmentation, LTV, cohorts, audiences and 50+ metrics calculated automatically for PrestaShop, WooCommerce, Shopify, Sylius, Magento and Shopware.
7-day free trial.