What CPM measures
CPM is the cost of 1,000 ad impressions. It is often useful for reach and awareness planning, but it should be read with click-through and conversion metrics when performance matters.
Example
If an ad campaign costs $500 and receives 100,000 impressions, CPM is $500 / 100,000 x 1,000 = $5.00.
Common mistakes
Low CPM does not automatically mean good performance. Check audience quality, frequency, click-through rate and conversions before increasing spend.
References
- Google Ads Help: Cost-per-thousand impressions definition - official CPM definition, accessed 2026-05-17.
Last reviewed: 2026-05-17