What is CPM (cost per thousand impressions)?
CPM is the price you pay for one thousand ad impressions. It is the base unit of awareness and demand-generation buying, but on its own it says nothing about whether a campaign is profitable. A low CPM is worthless if it reaches the wrong people, and a high CPM can be a bargain if it puts you in front of your exact buying committee. Read CPM alongside click-through rate, effective CPC and cost per conversion.
How this calculator works
The formula: CPM = (ad spend ÷ impressions) × 1,000 Click-through rate = clicks ÷ impressions Effective CPC = ad spend ÷ clicks Cost per conversion = ad spend ÷ conversions
Clicks and conversions are optional. Add them to turn a simple CPM into a fuller picture of how efficiently your reach turns into pipeline.
What is a good CPM for B2B SaaS?
It varies widely by channel and targeting. Broad display and YouTube CPMs for SaaS often run $2 to $15, while tightly targeted LinkedIn CPMs aimed at senior decision-makers frequently run $30 to $100+. The raw number matters less than the outcome, so judge CPM by the cost per lead it ultimately produces, not by the impression price alone.
How to lower CPM
- Right-size your audience. Segments that are too narrow get expensive fast; too broad and you waste reach.
- Raise ad relevance and engagement. Platforms reward engaging ads with cheaper inventory.
- Rotate creative. Fresh creative fights ad fatigue that quietly inflates CPM over time.
- Test placements. Different networks and formats price the same audience very differently.
Frequently asked questions
How do you calculate CPM?
CPM = (ad spend ÷ impressions) × 1,000. $5,000 across 500,000 impressions is a $10 CPM. Add clicks for CTR and effective CPC, and conversions for cost per conversion.
What is a good CPM for B2B SaaS?
Roughly $2 to $15 on broad display and YouTube, and $30 to $100+ on tightly targeted LinkedIn. Judge it by downstream cost per lead, not the raw impression price.
What is the difference between CPM and CPC?
CPM is cost per thousand impressions; you pay for reach. CPC is cost per click; you pay for clicks. CPM suits awareness; CPC suits performance. Effective CPC = CPM ÷ (1,000 × CTR).
How can I lower my CPM?
Right-size the audience, improve ad relevance and engagement, rotate creative to beat fatigue, and test new placements, while keeping reach on your ideal customer profile.