While dealing with Internet marketing & advertising, you might have heard the CPM abbreviation. Some people think it means 'cost-per-million.' However, 'M' stands for 'mille,' which means 'thousand' in Latin. So, CPM is basically 'cost-per-thousand.'
It is one way of setting the cost of advertisements. Unlike click-through rate or cost per acquisition (CPA), it counts every thousand impressions. As an impression, advertisers count every time a banner shows up on a webpage. Even if a user doesn't click on the ad, it still reads texts, and the campaign yet stays successful.
How to Calculate CPM?
Using a CPM calculator will help to define the costs of the whole advertising campaign. Below we explain how to count it correctly.
- The first half of the necessary data is the advertising campaign budget.
- Then, find out the number of impressions you require. Use Google Analytics to define the traffic your website receives.
- Now divide the full cost by the number of impressions and multiply it by 1,000. For example ($15,000/600,000 impressions) x 1,000 = $25 CPM.
A CPM calculator formula allows you to count each of the three values. When a website owner establishes a CPM, you can understand how much money you would spend and what impact you will get.
What is a Good CPM?
There is no single possible answer. While using a CPM advertising calculator, you should consider the campaign's purpose and the platform. For example, an average CPM rate in the B2B field is $4. The CPM is still good whether you pay $3.50 or $5.30 and still reach your goals. While you meet purposes and the price doesn't go significantly higher than usual, a rate is suitable.
Different factors affect your CPM budget calculator results:
- Price varies due to geography. The value is lower in South America than in Europe.
- The format and size can raise or decrease the price too. It costs more to place a video or a slideshow than an image.
- Seasonality changes cost significantly. The price usually rises before holidays when users start searching for presents.
- The more competitors in your niche market - the higher the price goes.
- Mobile-only advertisements cost less than ones for desktops due to size and impact.
A campaign will become more efficient after optimization. Pick websites with a related topic. The relevance score of your ad is also important. Pay attention to copywriting and design. You should consider a platform and pick different ads for YouTube and Facebook. Check results before & after optimization via the CPM cost calculator.
Building a marketing strategy is not easy, but web instruments might help you — apply Facebook, TikTok, or YouTube CPM calculators to invent your steps and budget. Many free online programs, such as Click Z CPM Calculator, Marketing Dive, and Omni CPM Calculator. Just insert two parameters you know and receive the third one.
You might find helpful tips and case studies on improving your advertising campaigns in the blogs of these CPM Calculators. Click Z even records a podcast on related topics! Stay tuned to new explanations and guides from developers and improve your skills in digital marketing and social media.