CPM Calculator

What is CPM?

CPM stands for Cost Per Mille, where "mille" means thousand in Latin. It's a metric used in advertising to measure the cost of 1,000 advertisement impressions on a webpage.

How is CPM Calculated?

The formula to calculate CPM is:

CPM = (Total Cost / Number of Impressions) * 1000

For example, if you spent $500 on an ad campaign that received 100,000 impressions, your CPM would be:

($500 / 100,000) * 1000 = $5 CPM

Why is CPM Important?

CPM is crucial for advertisers and marketers because:

• It helps compare the cost efficiency of different advertising campaigns or platforms
• It's useful for budgeting and forecasting advertising costs
• It can indicate the value of an audience to advertisers

Limitations of CPM

While CPM is a useful metric, it's important to remember that it doesn't measure the effectiveness of an ad in terms of engagement, conversions, or return on investment (ROI). It should be used alongside other metrics for a comprehensive understanding of ad performance.