CPM (Cost Per Thousand)
CPM = (Spend ÷ Impressions) × 1,000. In email, you see it when buying sponsorship slots or renting a list.
CPM is spend per 1,000 impressions; used for email sponsorships and list rentals.
Definition and examples
Cost Per Thousand (CPM), also known as Cost Per Mille (where "mille" means thousand in Latin), is a pricing model used in advertising that measures the cost of reaching 1,000 people with a marketing message. In email marketing, CPM specifically refers to the cost of having your message delivered to 1,000 email addresses, typically used for newsletter sponsorships, list rentals, and promotional placements within other organizations' email communications. The CPM calculation is straightforward: CPM = (Total Spend ÷ Total Impressions) × 1,000. In email marketing contexts, "impressions" typically refer to the number of emails delivered to inboxes, though some advertisers may count opens as the impression metric. This pricing model allows marketers to budget for broad awareness campaigns and compare email advertising costs against other digital marketing channels like display advertising, social media, and search marketing.
Why it matters
It matters because CPM helps you compare the cost of reaching an audience at scale. It is especially useful when evaluating paid channels, sponsorships, or newsletter placements side by side.
Common mistakes
A common mistake is making the term sound more complicated than it is in practice. The clearest explanation is usually the most useful one.
Related terms
Key takeaways
CPM provides a standardized framework for budgeting and comparing email advertising costs across different opportunities
Success requires evaluating audience quality, engagement rates, and downstream performance metrics beyond just CPM pricing
Effective CPM campaigns combine strategic audience targeting, compelling creative development, and comprehensive performance tracking