Calculator
Definition – What is a CPM?
CPM, or Cost per Thousand, is a measurement of the cost of advertising on a marketing campaign.
Formula – How to calculate CPM
Per Impression Cost = Campaign Cost ÷ Impressions
CPM = Per Impression Cost x 1000
Example
A marketing campaign costs $500 and generates 3,000,000 impressions.
CPM = ($500 ÷ 3,000,000) x 1000 = 0.0001667 x 1000 = 0.17
Therefore, this marketing campaign has a CPM of $0.17.
Sources and more resources
- Wikipedia – Cost per mille – Wikipedia entry on CPM and how advertising uses it.
- Investopedia – Cost per Thousand – CPM – Entry on CPM advertising, and how it compares with other marketing metrics such as CPC or CPA.