CPM Calculator

This CPM calculator is a free tool that helps you calculate your average CPM for your ad Campaign

How to calculate CPM?

Cost-per-thousand (CPM) is calculated by dividing the total cost of an impression by the number of impressions delivered. Most advertisers set their goals based on CPM; in fact, it's the only way to make sense out of the numbers game involved in pay-per-click advertising.

Types of CPM Rates

• Cost-per-click (CPC): An advertiser pays each time someone clicks on its ad. Google AdWords charges CPC by keyword.

• Cost-per conversion (CPC): An advert pays each time a user converts (e.g., buys a product). Facebook Ads charges CPC by action.

• Cost-Per-Action (CPA): This method takes into account actions other than conversions, such as people who liked a page or registered with an email newsletter. Google Analytics reports CPA.

How can I optimize my CPM?

Optimizing cost per mille (CPM) is the goal of any ad network. In order to get the highest CPM, you need to focus on two things - quality score and impressions.

Quality Score

A quality score is a number between 0 and 100 that represents the likelihood that a visitor will engage with an advertisement in a given context. If you have never heard of a Quality Score before, don't worry; you aren't alone. Most people who work in online advertising have never heard of them either. But if you've ever noticed that some ads seem to perform much better than others, you may have wondered what exactly makes one ad outperform another. You're not crazy; Quality Scores provide the answer.

There are two types of Quality Scores: impression-based and event-based. Impression-based scores attempt to predict whether an individual user will interact with an advertisement based on his or her browsing history. Event-based scores try to determine whether a specific action occurred on a page, such as filling out a contact form or making a purchase. Each type of score uses different signals to make its determination, and each signal has a weight assigned to it. These weights are called quality scores.

Impressions

Impressions are simply the total number of times an ad was shown to a particular user. Advertisers pay less money for their ads when they show up fewer times. And since users tend to visit websites that have lots of advertisements, advertisers want to reach as many potential customers as possible. So, in theory, the higher the number of impressions, the lower the price per impression.

Impressions only tell half of the story. As mentioned earlier, advertisers want to maximize the number of conversions they generate, which means they want to get as many people as possible to take action. When someone clicks on an ad or completes a conversion, he's now qualified to receive future communications from the advertiser. As long as the advertiser continues to reach that person, he'll continue to earn revenue. In return, the advertiser pays less per impression.

So, in short, the more impressions you can create, the better off you are financially. However, if you can increase impressions without affecting your quality score, then you'll actually save money. How? By using tools like remarketing pixels.

CPM Formula

Cost per mille (CPM) is calculated using the formula “cost divided by impressions”. CPM is an advertising measurement, similar to pageviews, that places value on the number of times people view an advertisement online.

How to calculate CPM With This Tool?

All you need to do is insert two of the metrics and this tool will calculate the third metric. For example, if you have 50,000 impressions and a CPM cost of $2 the total cost will be $250