CPM: Cost Per Mille
Specifically, CPM means "Cost Per Mille". In other words, CPM means the cost of showing an ad 1000 times. It is one of the methods for pricing marketing.
CPM - what is it?
Specifically, CPM means "Cost Per Mille". In other words, CPM means the cost of showing an ad 1000 times. It is one of the methods for pricing marketing.
How to calculate CPM?
To calculate CPM, the formula looks like this:
CPM = (Total cost / Number of impressions) x 1000
Example
Let's say you ran an ad campaign on Facebook that cost $10,000 and you got 100,000 impressions. This results in the following CPM:
CPM = (10,000 / 100,000) x 1,000 CPM = NOK 100 per thousand impressions
A low CPM value gives you as a marketer an indication of which channel is most cost-effective when it comes to the number of impressions per dollar spent on the campaign. CPM can be a good metric if your company wants to increase branding. If you want to focus more on conversion, the CPA and CPC parameters would be better to use.
