We have discussed the topic of KPIs in affiliate and digital marketing many times and told you about different effective strategies to improve them. This time we have an unusual case — we will still be looking at KPI, but one that you as an advertiser cannot influence in any way. We are talking about CPM—cost per 1000 impressions. At this point you will ask how an indicator that I cannot influence will help me optimize my campaigns and earn more; it’s absurd, isn’t it? We understand your confusion, but the secret is to adapt your marketing efforts and qualify. How to do that is what we’re going to cover right in this article.
Cost Per Mille (CPM) behind the scenes
CPM, which most likely you know as Cost Per Mille, is a metric in digital marketing that measures the cost of 1000 ad impressions. “Mille” comes from the meaning “thousand”, which makes sense. For advertisers and publishers, this is an important metric in determining the value of their campaigns and ad space. So, the CPM rates are how much you earn per 1000 times your offer’s ad is shown on a web page or an app targeted by you.
How to calculate CPM in the workflow?
Breaking down the numbers and calculating CPM is straightforward: divide the total ad cost by the number of impressions, then multiply the result by 1000.
CPM across different advertising platforms and channels
CPM rates can vary significantly depending on the traffic source—a particular advertising platform. If we discuss reasons for such variation, it is worth mentioning factors like audience demographics, ad format, and the level of competition for ad space.
| Platform or network | Average CPM rate | Why effective | Best for |
| Facebook & Instagram (META) | $7.43 | Broad audience reach with detailed targeting options. | E-commerce, lifestyle brands, and highly targeted demographics. |
| Snapchat | $8.21 | Opportunities for reaching a younger audience. | Fashion, entertainment, and short, visual campaigns. |
| YouTube | $4.05 | High engagement via video ads, making it a premium platform for awareness and action. | Video-heavy campaigns in industries like tech, education, and consumer goods. |
| TikTok | $4.38 | Engaging short-form videos, great for creative and younger audiences. | Brands looking to monetize TikTok accounts and engage younger, creative audiences. |
| $7.08 | Visual search ads drive traffic and brand visibility. | Visual-driven campaigns like fashion, home decor, and travel. | |
| Google Ads | $3.12 | Intent-based targeting ensures high-value impressions. | Small businesses and service-based industries with high-intent audiences. |
| $6.59 | Premium rates reflect high-value B2B audiences and decision-makers. | SaaS, recruitment, and professional industries. |
Why are there platform-specific CPM value variations?
CPM values may not always match to the real number of impressions. There are a few common reasons for this discrepancy:
Ad blockers
Users with ad-blocking software or browser plugins can prevent ads from being displayed. So, despite setting up the ads correctly, impressions will unfortunately not be counted
Geographic targeting
Impressions in higher-value (Tier-1) regions may produce greater CPM values compared to global averages.
Ad viewability
Some impressions may not meet platform-specific viewability thresholds (e.g., ads that appear off-screen).
Real-time bidding
CPM rates may vary due to competition in the ad auction process, which can result in minor discrepancies in campaign reports.
How to boost your CPM campaigns for maximum profit
Obviously, you can’t influence the minimize of the CPM model directly, but you can approach optimization from another angle and try to adapt your marketing manipulations to the most converting ad impressions. In this block, we’ve compiled some effective and proven tips for improving CPM campaign performance.
Smart audience targeting is a game-changer
Segment your audience strategically to ensure your ads reach the right people. For that, narrow your focus based on demographics, interests, and behavior so you can maximize impressions from audiences most likely to engage.
Test, refine, repeat
Complete A/B testing to experiment with different ad creatives. Test variations of headlines, images, videos, and CTAs to see what resonates most with the target audience. If something is not working or you found a better option, refine your ad elements with no doubts.
Experiment with ad formats
Sometimes you need to be a rebel and try new approach to get new results. Refresh your layouts and test placements that are not familiar to your strategy but align with user behavior, such as above-the-fold banners or in-feed native ads.
Optimize for mobile and stay on the wave of UX trends
As more users consume content on smartphones, mobile optimization is becoming a priority. Serve landing pages that load quickly, are responsive and user-friendly, and you should maintain engagement.
Here you can check out the full guide about Popunder ads optimization:
Most effective ad formats for CPM campaigns
As a bonus section, let’s take a look at those ad formats that are particularly advantageous for CPM advertising campaigns and allow you to increase your success:
Video ads:
In an era of popularity for short, dynamic content like Reels TikTok, video ads allow you to show your audience high engagement videos that will help you to get not only impressions but as many clicks as possible.
Popunder ads:
Popunders or Popups are one of the best CPM ad formats for advertisers who want to increase brand awareness. They will get as many impressions as possible with the optimal CPM rates.
Display ads:
A classic of the genre, banners remain effective, especially when placed in strategic, highly visible locations and with a colorful creative that aims straight for the bullseye with its CTA.
Final thoughts
Hopefully, now you have a better understanding of the essence and importance of Cost Per Mille. While CPM provides valuable insights into the average cost per impression, don’t forget to combine it with engagement metrics and the right ad formats to ensure better campaign performance. And last but not least of all, you should also apply the techniques of traffic quality improvement we discussed above: regular testing, effective audience targeting, UX optimization, etc. Keep an eye on the metrics, and let the indicators always be in your favor!
