Understanding CPM (Cost Per Mille) in Advertising
CPM, which stands for Cost Per Mille or Cost Per Thousand (Mille being Latin for thousand), is a common metric used in online advertising. It represents the cost an advertiser pays for one thousand views or impressions of an advertisement.
This calculator allows you to calculate any one of the three components (Cost, Impressions, CPM) if you know the other two.
How to Use
- Enter the two values you know (Campaign Cost, Number of Impressions, or CPM).
- Leave the field for the value you want to calculate blank.
- Click "Calculate".
The calculator will determine the missing value.
Formulas Used
- CPM = (Campaign Cost / Impressions) * 1000
- Campaign Cost = (CPM * Impressions) / 1000
- Impressions = (Campaign Cost / CPM) * 1000
Why Use CPM?
CPM is often used for:
- Pricing display advertising campaigns focused on brand awareness and visibility.
- Comparing the cost-efficiency of different advertising platforms or placements based on reach.
- Budgeting for campaigns where the primary goal is getting the ad seen many times.
It differs from other models like CPC (Cost Per Click) or CPA (Cost Per Acquisition), which focus on user actions rather than just views.