What is CPM?
CPM (Cost Per Mille) is the price you pay per 1,000 ad impressions. "Mille" is Latin for thousand. Unlike CPC (where you pay per click), CPM charges you for visibility, whether or not anyone interacts with your ad.
CPM = (Total Ad Spend / Total Impressions) x 1,000
If you spend $200 and receive 50,000 impressions, your CPM is $4.00.
Why CPM Matters for B2B Sales
CPM is most relevant for brand awareness campaigns where the goal is visibility, not immediate clicks. In B2B, CPM-based campaigns on LinkedIn or display networks can build brand familiarity before outbound sequences begin, creating a "warm" effect where prospects recognize your brand when your cold email arrives.
However, for performance-focused B2B campaigns, CPM is typically less useful than CPC because you're paying for eyeballs, not actions.
Key Benchmarks (B2B)
- LinkedIn Display: $6-$12 CPM
- Google Display Network: $2-$5 CPM
- Programmatic Display: $3-$8 CPM for B2B targeting
- Facebook/Instagram: $5-$15 CPM for B2B audiences
When to Use CPM vs CPC
- CPM: Brand awareness campaigns, retargeting, top-of-funnel display ads
- CPC: Lead generation, bottom-of-funnel search ads, performance campaigns
- Hybrid: Some platforms let you optimize for clicks while paying on a CPM basis
Common Mistakes
- Using CPM for direct response: If you need leads, CPC or CPA models are usually more efficient
- Ignoring frequency: High CPM spend on a small audience means the same people see your ad too many times
- Not measuring brand lift: If you're paying for awareness, measure whether awareness actually increased
- Cheap CPM chasing: Low CPM often means low-quality placements on irrelevant sites
How FlowStrata Uses CPM
FlowStrata uses CPM-based campaigns strategically for pre-outbound brand warming. Before launching cold email campaigns to a new ICP segment, we run targeted LinkedIn and display ads to build brand familiarity. This "surround sound" approach means that when our outbound email arrives, the prospect has already seen the FlowStrata brand 3-5 times, significantly improving open and reply rates.