CPM Calculator
This is an online CPM calculator that helps webmasters to determine your advertising costs, cost per 1,000 impressions (CPM), and the number of exposures (Ad impressions)..
What is an ‘Impression’?
An ad impression (aka. ad view) means the number of times an individual advertisement is displayed. It is used in online advertising, which often pays on a per-impression basis. Note that impressions are not a measure of whether an advertisement has been clicked on, only that is was displayed, which leads to some debate as to how accurate the metric is.
What is CPM?
CPM is the abbreviation of ‘Cost per thousand impressions’ (technically, “cost per mille”). CPM is a marketing term that denotes the price of 1,000 advertisement impressions on one web page. If a website publisher charges $2.00 CPM, that means someone has to pay $2.00 for every 1,000 impressions of its ad.
CPM is a common method for pricing web ads. The success of a CPM campaign is often measured by its click-through rate, which is the percentage of people who clicked on an ad.
How to calculate CPM?
CPM is defined as the cost per thousand impressions. Therefore, the formula for CPM simply divides the cost by the number of impressions divided by a thousand, which is:
CPM = 1000 * cost / impressions
By re-arranging the variables, you obtain the formulas below for obtaining the campaign cost and impressions.:
Campaign cost = CPM * impressions / 1000
Impressions = 1000 * cost / CPM
CPM example
Given:
- Campaign cost: $1,500
- I have 65,000 impressions
The CPM is:
CPM = 1000 * cost / impressionsCPM = 1000 * 1,500 / 65,000CPM = $23.08