CPM Calculator: Calculate Cost Per Mille in 3 Steps

Cost per mille (CPM) is an important metric publishers and advertisers use to plan their ad spends and anticipate expected revenues.

Disclaimer: Estimations are subject to your individual website and existing setup. Please note that these are estimates only. Contact us for a more detailed analysis or personalized demo by filling out the form above.

Cost per mille (CPM) is an important metric publishers and advertisers use to plan their ad spends and anticipate expected revenues. The ADSY24 CPM calculator helps publishers estimate the potential revenue they could generate from their website traffic. It does this by taking into account a variety of factors that go into determining CPM, such as website traffic, ad placement, and ad format, etc.

What Is Cost Per Mille (CPM)?

In online advertising, CPM is a metric that refers to the cost of showing an advertisement to 1,000 users. CPM stands for cost per mille where the letter "M" signifies "mille," a Latin term that means "thousands." It is often used as a benchmark to compare the cost-effectiveness of marketing campaigns and to calibrate advertising budgets.

Cost Per Mille or Cost Per Thousand (CPM) Formula

The CPM formula is as follows:
CPM = (Cost of the ad campaign / Total impressions) x 1,000

For example, let's say a company paid 10,000 for an online ad campaign that received 500,000 impressions. The CPM would be calculated as:
CPM = (10,000 / 500,000) x 1,000
CPM = 20
So the cost per thousand impressions (CPM) for this ad campaign would be 20.

How to Calculate CPM Using the CPM Calculator?

To use ADSY24 CPM calculator, follow these simple steps:

1. Input the total cost of the advertising campaign that you want to evaluate.

2. Input the total number of impressions or views that the advertising campaign generated.

3. Click on the "calculate" button and the CPM calculator will provide you with the cost per thousand impressions for your advertising campaign.

What Is Considered a Good CPM?

CPM can vary based on the platform, industry, ad format, targeting options, and other factors. For example, the average CPM for Instagram ads is around $10.41, while the average CPM for Facebook ads in the US is around $11.32.

To arrive at a reasonable CPM pricing model, it's necessary to analyze previous campaigns, compare results with market averages, and assess how CPM affects return on investment (ROI). Ultimately, what's considered a good CPM rate will depend on your specific goals, budget, and the performance metrics you're tracking.

If you’re interested in partnering with ad networks that have a track record of delivering industry-leading CPMs within their respective niches, have a look at our curated list of the best high CPM ad networks for publishers.