Our Cost Per Thousand, or Cost Per Mille (CPM), Online Calculator will enable you to designate the . The CPM is an adequate measure of ad costs.
The Cost Per Thousand, also known as Cost Per Mille (CPM) is a common method of pricing traditional ads or, more often, web ads when it comes to marketing. For traditional media it is often seen as a way to sample or benchmark your ad in a given medium, and in online marketing it is often seen as a way to calculate how much you will receive from web ad revenue and thus what the advertiser will pay to the host website.
Cost Per Mille is derived from the latin word “mille” for a thousand.
What does cost per impression mean?
An impression is simply a unit used in marketing that counts the number of digital views or engagements for a single advertisement campaign. Impressions can simply be replaced with the term “ad views”. When in the CPM one refers to cost per impression then, it will be the cost per ad view.
How do you calculate the CPM?
The CPM is calculated with a simple formula that our Online Calculator emulates. We start by first taking the Advertising Cost (in the appropriate currency, usually in dollars though). We then want to divide this by the actual results of a marketing ad campaign, measured in impressions. And then multiply this by 1000.
(Total cost of running the ad ($/€) / Impressions generated) * 1000
You merely have to put in the following figures into the related fields of our calculator :
- the total cost of running the ad
- the total amount of impressions generated.
- Click the “Calculate” button and it will multiply the total by a thousand.
You now have a CPM that you can compare with either other advertising campaigns, or with a different advertisement campaign in your organisation.
What is an effective use of the CPM?
An effective use of the CPM really depends on the type of product you are selling. If you are selling a product with a small target audience then the CPM might be a poor measure and you may want to try the Cost Per Click Calculator.
If your product has a large target audience, usually you must calculate what your industry average CPM is. In retail in the United States, the CPM is around $1.40.