What CPM is and why platforms price on it
CPM is the cost of a thousand ad impressions, from the Latin mille. It is how Meta, LinkedIn, TikTok, YouTube, programmatic display and connected TV actually charge, whatever bidding strategy sits on top: the auction sells impressions, and clicks, leads and purchases are what happens after. That makes CPM the cleanest price in paid media. It is set by demand for the audience and the placement, and it is counted by the platform, so it is almost never wrong.
Everything downstream depends on it. CPC is CPM divided by a thousand times the click-through rate; cost per lead is that CPC divided by the conversion rate. When a campaign's lead cost rises, the first question is whether the CPM moved (the audience got more expensive) or the rates did (the creative or the page got worse). The calculator's CTR extension shows the first step of that chain.


