CPM Calculator

What is CPM?

In advertising, it refers to the cost of delivering 1,000 ad impressions — meaning how much an advertiser pays every time their ad is shown 1,000 times, regardless of whether users click on it or not.

It’s one of the most widely used pricing models in digital advertising, especially in display and banner campaigns, video ads, and account-based marketing (ABM). CPM allows advertisers to measure the cost-efficiency of their campaigns and compare performance across different platforms or channels.

For example, if a campaign has a CPM of $12, the advertiser pays $12 for every 1,000 times their ad is displayed. This is helpful when you’re focused on reach and brand visibility — like making sure a specific list of companies is seeing your message repeatedly, even if they don’t click right away.

Compared to models like CPC (Cost Per Click) or CPA (Cost Per Action), CPM is best suited for awareness-driven strategies. It’s also easier to control and forecast since you’re paying for impressions, not waiting for users to take an action.

In tools like DigitalPilot, CPM is used to target specific B2B accounts — agencies or businesses can upload a list of domains, and banner ads are served only to employees at those companies. Since every impression is highly relevant, CPM pricing becomes not just cost-effective, but strategically valuable.

Ultimately, CPM helps marketers understand how far their message is going and how much visibility they’re getting for their budget — making it an essential metric in modern digital campaigns.

CPM Formula:

Example:

If you spend $500 on an advertising campaign that generates 100,000 impressions:

This means you're paying $5.00 for every 1,000 impressions of your ad.