Question 1

What is CPM and how is it calculated?

Accepted Answer

CPM (Cost Per Mille) measures the cost of 1,000 ad impressions. It's calculated as: CPM = (Total Cost ÷ Impressions) × 1,000. This standard metric allows you to compare advertising costs across different campaigns and platforms.

Question 2

What is a good CPM?

Accepted Answer

Good CPM varies by industry, platform, and targeting. Generally, lower CPM means more cost-efficient advertising. Display ads typically have CPMs of $1-10, while video ads can be $5-30+. Compare CPM within your industry and platform for context.

Question 3

What's the difference between CPM and CPC?

Accepted Answer

CPM (Cost Per Mille) is cost per 1,000 impressions (views). CPC (Cost Per Click) is cost per click. CPM is used for brand awareness campaigns, while CPC is used for performance campaigns. CPM doesn't guarantee clicks, while CPC only charges when someone clicks.

Question 4

How do I calculate effective CPM with profit margin?

Accepted Answer

Effective CPM accounts for profit margins: Effective CPM = Base CPM ÷ (1 - Margin/100). For example, if base CPM is $10 and profit margin is 25%, effective CPM is $10 ÷ 0.75 = $13.33. This shows the true cost after accounting for margins.

Question 5

How do I use CPM to compare advertising platforms?

Accepted Answer

Calculate CPM for each platform using the same campaign parameters. Lower CPM means more cost-efficient for impressions. However, also consider click-through rates (CTR) and conversion rates - a platform with higher CPM but better CTR might be more effective overall.

CPM Calculator - Cost Per Thousand Impressions

When Should You Use This Calculator?

Key Features:

Related Calculators: