CPM (Cost Per Mille)
CPM stands for Cost Per Mille (thousand impressions). It's the amount you pay for every 1,000 times your ad is shown. Meta Ads uses an auction-based CPM system where advertisers bid against each other for ad placements.
Example in Practice
"Our brand awareness campaign achieved a CPM of £4.50, which is 30% below the industry average for UK retail advertisers."
Related Terms
Frequency
Frequency measures how many times, on average, each person has seen your ad. High frequency (7+) can cause ad fatigue, leading to declining performance. Optimal frequency varies by objective: 1-3 for prospecting, 3-7 for retargeting.
ROAS (Return on Ad Spend)
ROAS measures revenue generated for every pound spent on ads. A ROAS of 4x means you made £4 for every £1 spent. Unlike ROI, ROAS only accounts for ad spend, not other costs like product, fulfillment, or overhead.
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