Definition
CPM (Cost per 1,000 impressions)
CPM is how much you pay for 1,000 ad impressions. Lower CPM means cheaper reach; higher CPM means more expensive reach.
What it means
CPM is a delivery cost metric: spend ÷ (impressions/1,000). It’s influenced by competition, audience size, seasonality, placement, and how platforms predict engagement. Creative affects CPM indirectly—engaging ads can sometimes earn better delivery economics.
Why it matters
- CPM determines how expensive it is to reach your audience at scale.
- A small CPM change can materially impact CAC when you spend heavily.
How to improve it
- Improve creative engagement (strong hooks, clear structure, proof).
- Test broader audiences and placements if you’re overly constrained.
- Refresh creatives to reduce fatigue-driven delivery issues.
Common mistakes
- Treating CPM as purely a bidding issue and ignoring creative.
- Comparing CPM across completely different audiences/placements.
Related terms
Apply this with free tools
Use August Ads tools to generate better hooks and scripts, then test variants: