Also known as: Cost per thousand impressions, Cost per thousand
CPM is the cost to show an ad 1,000 times — a key metric for judging the efficiency of paid social media campaigns, independent of conversions.
CPM helps agencies compare how efficient different ads or platforms are at pure visibility. A low CPM (€2-5) means cheap reach; a high CPM (€15-30) means more expensive but potentially more targeted audiences.
CPM varies widely by platform and industry: Instagram feeds average €5-10 in the Netherlands, LinkedIn €15-30 (B2B is pricier), TikTok €3-7. A high CPM isn't necessarily bad if the audience is very specific and conversion is high. CPM should always be read in context with CPC (cost per click) and ROAS (return on ad spend).
An Instagram campaign for client Y has a €1,500 budget and reaches 250,000 impressions = a CPM of €6. The agency compares this with a LinkedIn campaign on the same budget that reaches 75,000 impressions = a CPM of €20. LinkedIn is more expensive, but the audience is B2B and higher-value.
A measurable value that shows how well a specific goal is being met — for social media that could be engagement rate, reach, follower growth or click-through rate to the website.
ROAS is the ratio between revenue and ad spend — usually expressed as a multiple: a ROAS of 4 means every €1 of ad spend generates €4 in revenue.
A measurable value that shows how well a specific goal is being met — for social media that could be engagement rate, reach, follower growth or click-through rate to the website.
Reach is the number of unique people who saw a post; impressions is the total number of times a post was shown, including multiple views by the same person.
ROAS is the ratio between revenue and ad spend — usually expressed as a multiple: a ROAS of 4 means every €1 of ad spend generates €4 in revenue.
The number of new followers an account gains over a given period — an important but context-sensitive KPI, because follower quality matters more than quantity.
Systematically tracking and analysing what is said online about a brand, industry or competitor — to spot trends, opportunities and problems early.
The percentage of people who click a link or CTA after seeing a post or ad — a key KPI for lead-gen and e-commerce campaigns.
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