To determine how much you need to spend to buy a certain number of impressions for a particular advertising campaign is not always easy for many marketers. On the other hand, publishers also need a CPM calculator to determine the amount they are going to make based on their traffic capacity. Hence, in this post, we teach you how to calculate CPM.
This will help make things easier for both advertisers and publishers at least to figure out their campaign cost and possible ROI on their advertising and publishing campaigns.
So let’s get into it…
What is CPM?
CPM is simply an advertising pricing model used by both advertisers and publishers to determine the cost of their CPM advertising campaign.
CPM stands for (costs per mille/thousand) which represents the cost of one thousand ad impressions.
Use the below CPM calculator to calculate your CPM.
Fill in your Campaign details below
Enter two out of three options then hit ‘Calculate’ to identify the missing field.
How is CPM Calculated
Calculating CPM is a very easy division and multiplication mathematics and very easy to calculate. It is calculated by simply taking the total cost of the advertising campaign and dividing it by the total number of impressions, and then multiplying the number by 1000 (CPM = cost/impressions x 1000).
In most cases, the CPM rate is set by the Ad network or the publisher based on the amount and quality of traffic. Some publishers may decide to charge for $5 per 1000 impressions while some may charge for $3 per 1000 impressions.
Here is how to calculate CPM
Doing the maths using the above figures
Let’s assume a given company is planning to spend $10,000 for a CPM campaign and wish to get about 400,000 impressions.
To determine the cost they are going to pay per 1,000 impressions, you have to take the $10,000 and divide it by 400,000 which is the desired impressions, and then multiply it by 1,000 to get the cost per 1,000 impressions which is $25 in our case.
You can use the above CPM Calculator to get all your figures. You have to input only two figures to get the other. This means you can use the calculator to figure out your cost per campaign or how much you can spend to get a desired amount of impressions.
CPM is an important term and as a pricing model which makes it important for both businesses and publishers. For businesses, calculating advertising cost and the possible outcome is a necessity. An understanding of your CPM cost will give you an idea of how much to budget per advertising campaign.
As a publisher, you will be able to use the above CPM calculator to understand how much you will get publishing certain ads on your blog or website.
Using the above CPM calculator is in every way beneficial for both advertisers and publishers.