CPM Calculator

When starting an online advertising campaign, it is important to understand the various metrics used to measure its effectiveness. One of the most common metrics is the cost per thousand impressions (CPM).

How to Calculate Cost Per Thousand (CPM)

CPM (Cost Per Thousand) Formula

Here,

• CPM: Cost Per Mille (Thousand),
• Total Amount Spent: The total amount of money you have spent on your ad campaign,
• Total Measured Impressions: The number of impressions your ad has generated.

What Is Cost Per Thousand (CPM)?

Cost per Thousand is the amount you pay to generate 1,000 impressions. It is calculated by dividing your total amount spent by the number of measured impressions.

For example, if you are a business spending $1,000 on a campaign and receive 10,000 impressions, then

What are the benefits of CPM?

The CPM model is advantageous for both advertisers and publishers. Advertisers can ensure that their ads are being seen by their target audience, while publishers can generate revenue from ad space without having to sell directly to the advertiser.

Is CPM the only metric one should use?

No, CPM should be used in conjunction with other metrics such as click-through rate (CTR) and Cost Per Acquisition (CPA).

CTR determines how often a person who sees your ad clicks on it, whereas CPA measures how much you are spending to acquire a customer, or the cost of getting someone to buy your product or service.

Together, these metrics can help you determine the effectiveness of your overall ad campaign.

So, what’s the verdict? Is CPM worth it for your business? Frankly speaking, it depends on a lot of factors. But our calculator can help you make an informed decision.

Use our CPM calculator to determine how much money you could be making. Plugin your estimated impressions and see what the results are.

If you’re happy with the numbers, go ahead and start increasing those ads spend budgets!