CPM (Cost Per Mille)
The cost an advertiser pays per one thousand impressions of an ad — 'mille' is Latin for thousand.
Definition
CPM stands for cost per mille, or cost per thousand impressions. It's the price an advertiser pays to have an ad shown 1,000 times, regardless of clicks or conversions. It's a fundamental unit for comparing the cost of reaching audiences across placements and platforms.
Why it matters
CPM tells you how expensive it is to be seen by an audience. It's driven by competition, targeting, season, and ad quality. On its own it doesn't measure results — a low CPM is only good if those impressions lead to clicks and conversions.
How it applies to UGC ads
Ad platforms often reward engaging creative with more efficient delivery, which can lower effective CPMs. Strong UGC-style creative is one input here — but CPM should always be read alongside downstream metrics like CTR, conversion rate, and CPA.
Related terms
CTR (Click-Through Rate)
The percentage of people who click an ad out of everyone who saw it — clicks divided by impressions.
ReadCPA (Cost Per Acquisition)
The average amount you spend on ads to get one conversion, such as a purchase or sign-up.
ReadROAS (Return On Ad Spend)
Revenue generated for every dollar spent on advertising — total ad-driven revenue divided by ad spend.
ReadConversion Rate
The percentage of people who take a desired action — like buying or signing up — out of everyone who had the chance to.
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