CPM vs CTR
CPM (Cost Per Mille (Thousand Impressions)) and CTR (Click-Through Rate) both come up in business conversations and get confused. Here's the plain-English difference, side by side, so you can use each one with confidence.
The key difference: CPM refers to cost per mille (thousand impressions), while CTR refers to click-through rate — they describe different things even when they show up in the same sentence.
CPM — Cost Per Mille (Thousand Impressions)
The cost to show an ad 1,000 times. CPM is the standard pricing for awareness and brand campaigns.
CTR — Click-Through Rate
The percentage of people who click a link, ad, or call-to-action out of everyone who saw it. CTR = clicks / impressions.
When to use CPM
Reach for "CPM" when the conversation is specifically about cost per mille (thousand impressions). The cost to show an ad 1,000 times. CPM is the standard pricing for awareness and brand campaigns.
When to use CTR
Reach for "CTR" when the conversation is specifically about click-through rate. The percentage of people who click a link, ad, or call-to-action out of everyone who saw it. CTR = clicks / impressions.
FAQs
What is the difference between CPM and CTR?
CPM stands for Cost Per Mille (Thousand Impressions) — The cost to show an ad 1,000 times. CPM is the standard pricing for awareness and brand campaigns. CTR stands for Click-Through Rate — The percentage of people who click a link, ad, or call-to-action out of everyone who saw it. CTR = clicks / impressions.
Are CPM and CTR the same thing?
No. They're often used in the same conversation because they're related, but they describe different concepts. CPM = Cost Per Mille (Thousand Impressions). CTR = Click-Through Rate.
When should I use CPM vs CTR?
Use CPM when you're specifically referring to cost per mille (thousand impressions). Use CTR when the topic is click-through rate.