Create Date: July 18, 2024
Last Modified Date: November 26, 2024
When you are calculating CPM, or cost per 1,000 impressions, you will need to use the following variables:
Your CPM result will show you how much it costs you to get 1,000 impressions with your ads. For example, if your CPM is $21 then every time you get 1,000 impressions on your ads you are spending $21. What constitutes as a good or bad CPM depends on your business model, your industry and your overall goals.
Calculating CPM is very simple with the help of our tool. The steps involved with using our calculator includes:
Let's say you are assessing your marketing efficiency and progress. You want to find the CPM of one campaign that you ran over the last month. You spent a total of $5,410 and received a total of 193,000 impressions. Using this tool we can find the CPM. First, we enter 5,410 into the ad spend field and then we enter 193,000 into the impressions field.
We are now ready to hit calculate and get our CPM result. Once we do, we learn that our CPM is $28.03.
A good CPM varies based on the industry you are in, the type of ads you are running (display, search, social media, etc.), and other factors. Generally, search ads with a CPM around $35 - $40 are considered to be good. But this does not mean anything higher than that is bad for a business.
CPM is short for Cost Per Mille, but it is much more commonly referred to as cost per thousand.
A CPM of $15 means you must pay about $15 when advertising to reach 1,000 impressions. Essentially, you are paying $15 for every 1,000 people that see your ad on their screen.
No, CPM cannot be lower than zero.
A high CPM means you are spending a lot of money just to get 1,000 impressions. It can be a sign that your ad targeting strategy may be poor. You may be targeting a very high ticket niche, a competitor may be pricing you out, or your keyword targeting is very poor. There are several other reasons your CPM can get very high, but it can be an indicator that your ads need work.
