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Google CPM measures how much you pay for every 1,000 times your Google ad is shown—lower CPM means your budget reaches more people.

Formula

Google CPM = ( Google Spend ÷ Google Impressions ) × 1,000

Formula Components

MetricDefinition
Google SpendTotal amount spent on Google advertising
Google ImpressionsTotal times your Google ads were displayed
Metadata
TypeCurrency
Data SourceGoogle Ads
AggregationRatio

Example

A home décor brand spent $2,400 on Google Display ads in March and received 1,200,000 impressions:
MetricValueCalculation
Google Spend$2,400
Google Impressions1,200,000
Google CPM$2.00$2,400 ÷ 1,200,000 × 1,000

How It Works

Google CPM divides your total ad spend by the number of impressions, then multiplies by 1,000 to express the cost per thousand views. This metric helps you understand the efficiency of your awareness campaigns where reach matters more than clicks.

When to Use

ScenarioAction
Comparing brand awareness campaignsLower CPM = more efficient reach
Evaluating Display vs. YouTube spendCompare CPM across campaign types
Assessing audience targeting efficiencyHigh CPM may signal narrow targeting
Budget planning for impressionsForecast spend based on target reach

MetricRelationship
Google SpendNumerator—total ad cost
Google ImpressionsDenominator—total ad views
See all Google Audience metrics →