# What is CPM (cost per 1,000 impressions)?

> CPM is what you pay for 1,000 ad impressions. Learn the formula, see a worked example in rupees and find out what pushes CPM up or down.
- **Author**: Marxx
- **Published**: 2026-10-22
- **Category**: Metrics
- **URL**: https://marxx.ai/library-glossary/cpm

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CPM (cost per mille) is what you pay for 1,000 impressions of your ad. "Mille" is Latin for thousand. A CPM of INR 150 means each 1,000 views of your ad cost INR 150.

## The formula

CPM = (ad spend / impressions) x 1,000

## A worked example

You spend INR 30,000 on a Meta campaign and it gets 2,40,000 impressions.

- CPM = (30,000 / 2,40,000) x 1,000 = **INR 125**

Flip it to plan a budget. If you want 5,00,000 impressions at that CPM, you need 5,00,000 / 1,000 x 125 = INR 62,500.

## What pushes CPM up

- **Competition.** CPMs often rise in festive weeks like Diwali and Black Friday, when more brands bid for the same people.
- **Narrow audiences.** A small, much-wanted audience can cost more per view than a broad one.
- **Weak ads.** Meta's auction favours ads people are likely to engage with. Meta says a more relevant ad can beat ads with higher bids, so a dull ad often pays more for the same reach.
- **Placement.** Feed, Reels and Stories can each price differently.
- **Country.** The same audience costs different amounts in different markets, so compare CPMs only within one country.

## Is a low CPM good?

Not on its own. Cheap impressions that nobody clicks are a waste. Read CPM with [CTR](/glossary/ctr) and cost per purchase. A INR 300 CPM ad that sells is better than a INR 60 CPM ad that does not.

## FAQ

### What is a good CPM on Meta in India?

It varies by audience, season and objective, so compare against your own last 90 days rather than a published average. Watch the trend, not one day.

### What is the difference between CPM and eCPM?

CPM is what an advertiser pays. eCPM (effective CPM) is usually what a publisher earns per 1,000 impressions, worked out after the fact.

### How do I calculate my own CPM quickly?

Use the free [CPM calculator](/cpm-calculator). Enter spend and impressions, or a budget and a target reach.

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