Use advanced mode to compare the costs of two campaigns.
This is a tool for people who buy or sell digital media and advertising and online traffic like marketers and publishers.
CPM is the cost per 1,000 ad impressions. CPM is an acronym for “cost per mille” or “cost per thousand” and is a common measure of volume in advertising.
Being able to calculate CPM accurately is important when you are planning media and advertising budgets.
This calculator can be used to calculate either the total cost (budget), CPM, or number of impressions.
If you’d like to combine it with cost per click, use our CPC and CPM calculator.
Online marketers also love the online conversion calculator because it is such a powerful tool!
The formula for CPM a is simple one.
Since CPM is cost per thousand impressions, you simply divide the cost times 1000 by a the number of impressions.
The CPM formula is
CPM = 1000 * cost / impressions
You may also want to understand the reverse formulas:
Cost = CPM * impressions / 1000
Impressions = 1000 * cost / CPM
Buying media using the CPM model has the benefit of being easy to understand and use.
For direct response, performance, CPA, and ROI/ROAS buying advertising on a CPM model, it is important for advertisers to use conversion tracking and optimization to maximize the value of the traffic and how well it will converts.
If it is not possible to measure actual conversions, be sure to measure clicks and to track and optimize your CPC (cost per click). This will allow you to have more predictable costs, but it is up to you to make the traffic convert.
Some advertisers and publishers buy and sell advertising on a CPA (cost per action) model, where the advertiser pays every time the user performs an action (registers, makes a purchase, etc.). This is a very low risk method for advertisers, but it is very high risk for publishers because they have little control over the advertiser’s ability to get the traffic to convert, drive revenue, and monetize the users.