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What Is CPM? Marketing and Advertising CPM Explained For Beginners


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What Is CPM? Marketing and Advertising CPM Explained For Beginners

Date: 2020-08-31 20:53:37

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What is CPM? CPM is a popular metric in Marketing and Advertising because it tells advertisers how much they are paying for impressions. CPM is the cost per 1,000 ad impressions. It is calculated differently across different platforms.

CPM stands for Cost Per Mille. Mille is a latin word that means “thousand.” CPM in Marketing and Advertising measures cost per 1,000 impressions. The average CPM can vary based on the ad network, industry, ad type, and where your ad is shown. Premium placements means a more expensive CPM, which can range from $15-$45 per 1,000 ad impressions. On average, advertisers usually pay a CPM between $5-$10 per 1,000 ad impressions. The average CPM that I use when I am calculating estimates is $7.50 per one thousand impressions.

Example:

Surfside PPC runs a Display Advertising campaign. I get 10,000 impressions and it costs $10.

What is my CPM? $1

CPM Formula:
CPM = (Impressions/1000)/Cost

When calculating CPM, you want to take your total impressions and divide them by 1,000. Then, you want to take that number and divide it by your campaign cost. For example, if 10,000 impressions cost me $20, then my CPM would be $2.00.

Helpful URLs:

What Is a Typical CPM? CPM for Google Ads and More:

Social media advertising cost-per-mille (CPM) worldwide:

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