What is the CPM formula?

[Alex Jones]

What is the CPM formula?

CPM is calculated using this formula: Total campaign spend ÷ Number of impressions × 1,000. CPM varies considerably across industries and platforms and is also influenced by location and seasonal factors. This means it's best to focus on the value of your impressions, rather than aiming for an “average” CPM.

[kind]

The formula for calculating CPM is:

[
CPM = \frac{\text{Total Cost}}{\text{Total Impressions}} \times 1000
]

Where:

Total Cost is the total amount spent on the advertising campaign.
Total Impressions is the total number of times the advertisement is displayed.
For example, if an advertising campaign costs $500 and generates 100,000 impressions, the CPM would be calculated as follows:

[
CPM = \frac{500}{100,000} \times 1000 = 5
]

This means the CPM is $5, indicating that it costs $5 to reach 1,000 impressions.