Short for cost per mille and more often referred to as cost per thousand, CPM is a core metric used in marketing and media buying. CPM represents the average cost
Cost Per Thousand Impressions (CPM) is calculated by dividing the total cost by the total impressions divided by 1000.
Starting with the CPM and impressions the total cost can be calculated by multiplying the CPM by the total number of impressions divided by 1000.
To calculate how many impressions will be purchased based on the CPM and total cost. Start by divining the total cost by the CPM and then multiply this answer by 1000. Remember when looking at the final answer it is not possible to have partial ad impressions, so if the number contains decimal places you will need to round down to the nearest whole number.
Frequently Asked Questions
CPM stands for cost per mille and is more commonly referred to as cost per thousand impressions. Mille is the roman numeral for 1000.
CPM is short for cost per mille and more often referred to as cost per thousand, CPM is a core metric used in marketing and media buying. It represents the cost of buying 1000 impressions.
eCPM or effective CPM is calculated using the same formula as CPM. eCPM could be used by advertisers to represent the effective cost per thousand impressions based on the number of impressions that were seen by their target audience. It could be said that this metric is a real representation of the value for a given business.
In social media CPM is the measure of the cost per 1 000 impressions. CPM's are often used as a cost benchmarking metric for brand awareness objectives. When running social media campaigns CPM may not always be relevant to the objectives of your campaign.
There is no 'normal' CPM rate. CPM varies by media channel, location and targeting parameters.
There is no generally agreed 'good' CPM. This is due to the vastly different cost bases of mediums, for example online advertising has a very different cost to the publisher than the cost of a radio ad.
A CPM campaign is an advertising campaign where the advertiser has a fixed agreed cost per thousand (CPM) and pays for the advertising on this basis. This is in contrast to other advertising buy models such as CPC, which is prevalent in digital marketing such as paid Google search where businesses pay for each click on their ad.