What is CPM? The meaning of CPM
CPM is the cost of 1,000 ad impressions. To put it in plain english, CPM is how much it costs to reach one thousand people with an ad.
For example, if it costs $10 to show your ad to 1,000 people on a website, the CPM of that website is $10.
Examples of CPM
- If you pay $50,000 to run an ad on TV and 16,000 people see it, the CPM of that time slot on that channel is $3,125
- If I charge people $100 per month to put a banner on my site, and my site gets 12,000 visitors, the CPM of my website is $8.33 (for every $8 dollars and 33 cents, one thousand people see the banner ad)
- If I put Google Ads on my site and I get 2,000 visitors in one month and Google pays me $17 for that month, my CPM is $8.50
- If you want to advertise on a podcast that has 34,000 listeners and they tell you that their CPM is $15 you can expect to pay $510 for your ad
What does CPM stand for?
CPM stands for Cost Per Mille and “Mille” is the Italian word for “one thousand”
How To Calculate CPM
The formula to calculate a CPM is: Cost X 1,000 / Impressions
For example: If it costs $3 to reach 2,000 people then the CPM is $1.50 calculated like this:
$3 X 1000 = $3,000
divided by 2,000 = 1.5
CPM Calculator
instant CPM calculator by Omnicalculator. Enter the cost and how many impressions and it will tell you what the CPM is