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What is CPM
CPM means cost per mile or cost per thousand. It is a common measure
in online marketing used mainly in paid social media ads. The cost per
thousand covers the cost per thousand impressions on a paid ad.
For a display ad, Google counts an impression as:
•At least 50% of the ad is visible
•It is visible for one second or longer
CPM •Video is 2 seconds viewed or longer
Calculator
How to calculate CPM
To calculate impressions using CPM calculator divide total spending by
the number of impressions. You can also get the other equation values
like total cost of campaign = total impressions ÷ 1000 x CPM.
CPM = Total Campaign Spend ÷ Number of Impressions X 1,000
For example, If you had a $1,000 ad spend on Facebook with 750,000
impressions times 1000 you would have a cost of $1.33 per thousand
impressions for your ads.
How to calculate Number of Impressions
Calculating the number of impressions you want for your ad or have available
is also an important metric. If you have an audience of 1000 people you need
to multiply this audience by the frequency you want them to see the ad at.
Impressions = Audience Size x Frequency
For example, if you have an expected target ad size of 100,000 and wish to
show each person your ad 7 times you will need 700,000 impressions.
In our original calculation that is:
CPM CPM = $1,000 ÷ 700,000 x 1,000 = $1.43
Calculator Note: If your CPM is very large like $142 you likely need a larger audience.
Remember CPM is for broad awareness and looks for the most impressions.
When Should You Use CPM Over CPC
CPM is the best way to calculate cost on display ads, video ads, and when you
are using awareness or reach as a goal or objective. When using
CPM calculator remember the goal is not to get clicks it is more about having
as many people view your ad as possible. If you are looking for a better click-
through or to increase your site’s traffic cost per click (CPC) may be the better
option for you.
Why does CPM matter
CPM is important because it compares the cost of views for
different ads. You can also use CPM to help you decide how much
you need to spend on a certain campaign to get the results you are
looking for.
It is not suggested to rely solely on the CPM calculator metric but
CPM is a great way to start a broad campaign that creates
CPM interesting audiences especially on the Facebook platform. We use CPM in the house to decide how much to spend on targeting ads to
Calculator cold audiences to introduce a product, service, or brand.
What is the average CPM
CPM depends greatly on the audience size you have the more
targeted your audience is the higher your CPM is. We see an
average of $2 – $5 per CPM when using large broad audiences.
When your audience is small or defined it would not be uncommon
to see a CPM closer to $15.
It’s important to look at your numbers based on your individual
client, audience size, and industry. If a more defined audience is
better for your ads it is more important to hit the frequency of
views over a specific CPM.
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