Cost Per Mille (CPM) is a digital advertising metric that represents the cost of 1,000 ad impressions. In Latin, “mille” means “thousand.” CPM is commonly used in display, social media, video, and brand awareness campaigns in SaaS and B2B marketing.
What Is CPM?
CPM measures how much you pay every time 1,000 people see your ad, regardless of whether they click. It’s the most common pricing model for impression-based advertising, especially when the goal is visibility rather than direct conversions.
CPM helps advertisers compare cost-efficiency across campaigns aimed at brand exposure or top-of-funnel performance.
CPM Formula
CPM = (Total Cost ÷ Total Impressions) × 1,000
Example:
Ad Spend: $400
Impressions: 80,000
→ CPM = (400 ÷ 80,000) × 1,000 = $5.00
When to Use CPM in B2B and SaaS
- 📢 Brand awareness campaigns targeting specific roles or companies
- 📺 Video ads on platforms like YouTube or LinkedIn
- 🧭 Retargeting to re-engage unconverted visitors
- 🎯 High-volume reach for product launches, webinars, or events
CPM vs CPC vs ROAS
| Metric | Measures | Best For |
|---|---|---|
| CPM | Cost per 1,000 impressions | Brand awareness, reach |
| CPC | Cost per click | Lead generation, conversion |
| ROAS | Revenue per dollar spent | Profitability, performance optimization |
Choose CPM for visibility; CPC or ROAS when focusing on conversions and ROI.
Average CPM Benchmarks (B2B)
| Platform | Average CPM |
|---|---|
| Facebook Ads | $6.00 – $12.00 |
| LinkedIn Ads | $25.00 – $60.00 |
| Google Display | $2.00 – $6.00 |
| YouTube Ads | $10.00 – $30.00 |
| Twitter Ads | $4.00 – $8.00 |
CPM rates vary based on audience targeting, geography, ad format, and competition.
How to Lower CPM
- 🎯 Improve targeting using firmographic and behavioral filters
- 📊 Test multiple creatives for relevance and quality score
- 📄 Use high-performing landing pages to drive better ad scores
- 📈 Focus on ad engagement (CTR) — better engagement lowers CPM on many platforms
- 🔁 A/B test ad formats and placements
CPM with CUFinder
CUFinder helps B2B marketers reduce and optimize CPM by:
- 🧠 Providing enriched contact and company data for precise targeting
- 🎯 Helping build custom audiences based on firmographics (job title, size, industry)
- 🔁 Powering retargeting campaigns with verified leads
- 📈 Improving conversion post-impression, increasing overall funnel efficiency
Cited Sources
- Wikipedia: Cost per mille
- Wikipedia: Online advertising
- Wikipedia: Digital marketing
- Wikipedia: Ad impression
Related Terms
FAQ
What is a good CPM for B2B campaigns?
A good CPM depends on platform and targeting. On Google Display, $2–$6 is common. On LinkedIn, CPMs range from $25 to $60 due to niche targeting.
Does CPM include clicks or conversions?
No. CPM only charges for impressions. Clicks and conversions are separate metrics.
How does CPM compare to CPC?
CPC is performance-based — you only pay for clicks. CPM is exposure-based — you pay for views, regardless of action.
Why are LinkedIn CPMs higher?
LinkedIn targets decision-makers and professionals, so the cost to reach that audience is higher but often more qualified.
Can I use CPM for lead generation?
CPM is best for awareness, but combined with targeting and retargeting, it can contribute to lead generation over time.