COMMERCE & ADVERTISING MEASUREMENT

Cost per thousand impressions (CPM)

Also called
Cost per mille
Abbreviation
CPM
Reading time
3 minutes

CPM expresses advertising cost per thousand counted impressions. It can describe a buying basis or an effective metric calculated from spend and impressions.

COST PER THOUSAND IMPRESSIONS IN PRACTICE

  1. Define the impressionCheck the platform and reporting basis.
  2. Calculate the metricDivide spend by impressions and multiply by 1,000.
  3. Review the outcomeAssess reach, engagement and conversions separately.

Use the agreed units, actual records and approved procedures for your operation.

A WORKED EXAMPLE

$2,000 ÷ 500,000 × 1,000 = $4.

A hypothetical campaign spends $2,000 for 500,000 counted impressions, yielding a $4 effective CPM. Those impressions may include repeated exposure to the same people. The figure does not establish unique reach or the number of orders that will need fulfillment.

WHAT THIS MEANS FOR YOUR QUOTE

Agree the requirement before comparing quotes

Use the actual shipment, stock and service requirements. Record the billing unit, included work and responsibility for exceptions.

Put this term to work. Use the 3PL pricing and rates guide for the wider invoice context and the guide to comparing 3PL quotes to compare the same scope, activity profile and billing units.

A LITTLE MORE CONTEXT

Questions about Cost per thousand impressions

Does mille mean a million?

No. Here it means one thousand.

Are impressions unique customers?

No. A person can generate several impressions.

Does a low CPM prove profitable sales?

No. Conversion, margin and other costs also matter.

Source & example notes

Google Ads: cost per thousand impressions.

Sources provide background on the linked topic. Product documentation describes a particular implementation; confirm the rules, contract and procedures that apply to your operation.

Quantities, costs and scenarios are illustrative, not operating targets, approved handling instructions or guarantees. Source guidance reviewed 22 October 2026.

Last updated: · 3PL Hub

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