If you are running paid ads or looking at your analytics dashboard then you have probably seen the term CPM. It stands for cost per thousand impressions and it tells you how much you are paying to get your ad seen one thousand times. But the real question is what is a good CPM in 2025 and how do you know if you are overpaying
Let us break it down without the buzzwords
What does CPM actually mean
CPM stands for cost per mille which is Latin for cost per thousand. It is how much you pay to show your ad one thousand times whether or not someone clicks. It is the go-to metric for brand awareness campaigns and display ads where you care about reach not just clicks or conversions.
But just knowing your CPM is not enough. You need to know if it is good or bad for your industry and your goal.
Average CPMs by platform in 2025
Here is what advertisers are typically paying for one thousand impressions across major platforms in 2025.
| Platform | Average CPM |
|---|---|
| Google Display | $2 to $5 |
| Facebook Ads | $8 to $14 |
| Instagram Ads | $6 to $12 |
| YouTube Ads | $10 to $30 |
| LinkedIn Ads | $70 to $90 |
| TikTok Ads | $5 to $10 |
| Twitter Ads | $6 to $10 |
These are rough averages and your actual CPM might be higher or lower based on your audience targeting competition and ad quality.
So what is considered a good CPM
A good CPM is one that brings you the right audience at a price that fits your goals. That means
- Under $10 CPM is considered strong for most display and awareness campaigns
- $10 to $20 is normal for competitive markets or broader social targeting
- $30 to $90 is typical on B2B platforms like LinkedIn where the audience is smaller but more valuable
If your CPM is high but your conversions are good then it is still worth it. If your CPM is low but no one clicks or converts then it is just cheap noise.
How to tell if your CPM is too high
Your CPM might look expensive but it only matters if it is hurting your bottom line. Here is how to think about it
- High CPM with low CTR or poor engagement means your targeting might be off
- High CPM with good conversions could mean your audience is worth the cost
- Low CPM with no conversions usually means the traffic is low quality or too broad
The goal is not the lowest CPM. The goal is efficient reach with results.
How to lower your CPM
If you think your CPM is too high here are a few ways to bring it down
Improve your creative
Ads that get ignored drive up your costs. Try better hooks clearer messaging and stronger visuals. Platforms reward ads that get engagement.
Refine your targeting
If your targeting is too broad or too competitive your CPM will rise. Focus on tighter audiences or test interest layering to improve performance.
Use more optimized placements
Automatic placements often get better CPMs than manual ones especially on Meta platforms. Let the algorithm test different placements like Reels Stories or In-Stream.
Test multiple ads
Do not run a single ad for weeks. Test different versions side by side. The platform will automatically shift budget toward the better performer which usually means lower CPM.
When is a high CPM actually okay
High CPM is not always bad. Sometimes it means you are reaching the exact right people in a premium audience.
For example if you are running a B2B campaign on LinkedIn targeting CFOs in tech companies a $90 CPM might sound crazy. But if one lead turns into a five figure contract then it is more than worth it.
That is why smart marketers never chase low CPMs just to brag about numbers. They focus on how CPM fits into the bigger picture of cost per lead and return on ad spend.
Final thoughts
So what is a good CPM in 2025. It depends on your platform your audience and your goals. For some brands a five dollar CPM is a win. For others sixty dollars is still profitable because they are reaching high value decision makers.
Always ask what happens after the impression. That is where the real value comes in. If you want help figuring out your numbers and building ad campaigns that balance CPM CPC and lead quality we can help.