How CPM works
With CPM bidding, you pay for views of your ad, not clicks. For example, $50 spent on 10,000 impressions is a $5 CPM. Many platforms also report CPM for click-based campaigns, so you can compare how expensive an audience is to reach.
On YouTube, bumper ads use target CPM bidding, so you pay per impression. Display campaigns can use viewable CPM, which counts only impressions people could actually see.
CPM vs CPC
| Model | You pay for | Best for |
|---|---|---|
| CPC | Each click | Leads, calls and sales from people ready to act |
| CPM | Each 1,000 impressions | Awareness and staying top of mind |
When CPM makes sense for a local business
- Launching a new location to a nearby audience
- Short video ads that show your work
- Reminding past visitors before a busy season
- Building recognition before running search ads
Search ads aimed at buyers rarely need CPM. People searching for "emergency plumber" are ready to click, and paying per click aligns cost with intent.
Watch frequency
CPM campaigns can show the same ad to the same people too often. Set frequency caps, so each person sees the ad a few times a week at most. Too many repeats raise annoyance and lower results.
Good example. A new dental office runs a short video in its area on CPM for a month before opening, then switches budget to search ads.
Bad example. A plumber pays CPM for display ads across the state and judges them by phone calls the next day.
Read what CPC is. Our PPC management picks the pricing model that matches your goal.