When you start advertising online, there are 3 different methods: CPC, CPM and CTR. In this article, we discuss what CPM is.

What is CPM?

With CPM, cost per mille, you pay for the number of impressions of your online ad. These impressions are per 1,000 (mille). Clicks on the ad are included. Therefore, you pay nothing extra for this. This is specifically about the number of views, and not interaction with your ad.

The greater the number of people who see your ad, the higher the conversion rate. Paying per time your ad is shown is not possible. That is why counting is done in thousands.

This is an appropriate way to advertise if the ad is purely visual and does not require interaction.

The pros and cons of CPM

The benefits of CPM:

  • Understanding the size of the reach: this is conducive to your brand awareness;
  • costs can be determined and compared;
  • Economical way of advertising: you pay per thousand impressions.

The disadvantages of CPM:

  • it’s all about quantity rather than quality of traffic;
  • you do not obtain information about the searchers reached;
  • you obtain no information about the effectiveness of the ad.

My advice

Use CPM only when a visual ad is involved. The purpose of your ad determines which method is most lucrative. If your goal is to increase brand awareness, we recommend using CPM as a method for online advertising.

So think carefully about which pricing model is best for your online ad. Want to sell ads on your site or advertise on Google yourself? Know which pricing model is most ideal for your business.

Frequently Asked Questions

What is CPM?

CPM stands for Cost Per Mille. It is a method by which ads are billed. In this, you pay for the number of times your ad is shown. This goes per 1,000 (Mille). It is a good advertising method if you have a visual ad that does not require interaction.

What is the impact of CPM on SEO?

CPM does not have much to do with SEO. You can put it to good use if you want to increase your brand awareness.

Senior SEO-specialist

Ralf van Veen

Senior SEO-specialist
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With this broad experience within SEO, I have developed the SEO course and helped hundreds of companies with improved findability in Google in a sustainable and transparent way. For this you can consult my portfolio, references and collaborations.

This article was originally published on 22 March 2024. The last update of this article was on 22 March 2024. The content of this page was written and approved by Ralf van Veen. Learn more about the creation of my articles in my editorial guidelines.