CPM Calculator
How to Calculate CPM
CPM stands for Cost Per Mille, or cost per thousand impressions. It represents the cost to reach 1,000 people or impressions. The formula is:
CPM = (Advertising Cost / Impressions) * 1000
For example, if you spent $200 and received 50,000 impressions, your CPM would be calculated as:
CPM = (200 / 50,000) * 1000 = $4.00
Frequently Asked Questions (FAQs)
- What is CPM? – CPM is the cost per 1,000 impressions, a common metric in digital marketing to measure ad spend efficiency.
- Why is CPM important? – CPM helps advertisers compare the cost-effectiveness of ad campaigns, especially when aiming for high reach and visibility.
- What’s a good CPM rate? – This varies by industry, platform, and campaign objectives, but generally, lower CPM rates indicate better cost efficiency.
- How can I lower my CPM? – Optimizing targeting, improving ad quality, and testing different ad placements can help lower CPM costs.
