To determine how much you need to spend to buy a certain number of impressions for a particular advertising campaign or marketing campaigns 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 or ad campaign.
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 cost per thousand impressions (costs per mille/thousand) which represents the cost of one thousand ad impressions.
Use the below the calculator to calculate your cost per thousand impressions (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 and it’s makes your marketing strategies better.
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 ad campaign or a paying per click campaign and wish to get about 400,000 impressions.
To determine the ad cost they are going to pay for the cost per thousand impressions, you have to take the $10,000 and divide the cost by 400,000 which is the desired impressions, and then multiply it by 1,000 to get the cost per thousand impressions which is $25 in our case.
You can use the above CPM Calc. 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.
One of the benefits of using the above CPM calculator is to know the approximate outcome of an ad campaign or advertising campaign, it will also help you have a better understanding of your campaign ROI
It is highly recommended for advertisers to evaluate the potential outcome of their advertising campaigns before engaging launching them and by simply using the CPM model to divide the cost of the given CPM ad campaign to determine how much their CPM ad will cost will pretty much show the cost of their campaign.
CPM is an important term and as a pricing model which makes it important for both businesses and publishers.
The same applies PPC or paying per click marketing strategies. You will always benefit from understanding your cost of advertising before launching it.
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, have an understanding of how actually the CPM model works will eventually lead to more informed decisions on how and where to monetise your traffic.
Using the above cost per thousand impressions (CPM) calculator is in every way beneficial for both advertisers and publishers.