CPM is an essential marketing metric that’s used to measure how many people your advertising reaches. Find and learn everything you need to know about CPM and if it’s the right metric to use for you in this blog post. 

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As a marketer, it’s important to track how many people your advertising gets to. The numbers will be able to tell you how well your campaigns are doing. 

You’ll find that most businesses will often pay for advertisements on websites based on how many people view their content, which is called an “impression.” We’ll go more in-depth with this information later on, but first, let’s explain what CPM means. 

 

What does CPM mean?

CPM stands for cost per mille, which means the cost per thousand impressions. 

An “impression” is whenever someone sees your campaign, whether it’s on social media, on a website, on a search engine, or on any other marketing platform. In a CPM campaign, an impression happens when an ad is displayed and viewed by the specific target audience. 

 

How do you calculate CPM?

The calculation for CPM is quite easy. All you have to do is divide the ad spend by the number of impressions multiplied by a thousand. 

CPM Formula

CPM = AD SPEND / IMPRESSIONS x 1,000

An advertiser will then pay the website owner the set cost/thousand impressions of their ads. 

 

What are the benefits of CPM advertising?

You’ll find that most of the time CPM advertising is less expensive than other promotions. But keep in mind that the price you pay depends on where you plan on showcasing your advertisements. If you want your campaigns to be within a large audience or on a high-traffic website, you’ll probably pay a little more than you would if you wanted a campaign in a low-traffic area. 

 

Conclusion

Next time you’re working on a marketing campaign, be aware of the numbers and understand the cost. Creating your own advertising path, whether it has CPM in it or not, is the key to achieving your campaign goals. 

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