CPM Calculator

What is CPM?

CPM stands for cost per mille; here mille means thousand. In simple terms it means cost per thousand in marketing or advertising. This is a way to understand how much an advertiser pays for per thousand impressions on their ads. Impression counts when an advertisement is seen by a user.

What is a Good and a Bad CPM?

A good CPM helps you achieve your advertising goal whereas bad CPM means high costs to reach the target audience. A good CPM means it doesn't cost much; it is below average for your niche audience to reach. But a bad CPM means it costs more than average to reach your target audience.

How Do You Calculate CPM – Cost 

Per Mille?

It’s really easy to calculate CPM. To calculate we can use this simple formula:

 

CPM = (Total Campaign Cost/Total Impression) x 1000

 

Here, Total Campaign Cost means the total cost of running the campaign and Total Impression means the amount of impression that ad has received.

How to Calculate CPM with TrueSuggests CPM Calculator?

Our CPM calculator can easily calculate CPM. It's not a probable result, it gives an exact result. To calculate CPM, do these steps:

 

1. When you come to the website, you will see 3 boxes to type. 1st one is campaign cost, 2nd one is CPM, and the third one is Ad Impressions. You have to enter data in the 1st and the last box. (Do not enter any data in the 2nd box or it will not show any result)

 

 

 

2. After you enter your data into the first and last box, click the button “Calculate”.
 

 

3. It will come up with an answer box like this:

 

 

This is how easily you can calculate CPM.

Why Calculate CPM with An Online CPM Calculator?

It is important to use an online CPM calculator for many reasons. By using a CPM calculator, users can easily calculate their costs, do campaign budget planning, perform analysis, benchmarking etc, . They can assess ad campaigns easily too. They can:

Save Time:

With the online CPM calculator, industry specialists or the Ad managers can easily check the CPM because it saves time. 

Campaign Evaluation:

With the calculator, the specialists can evaluate the market and judge if the cost per thousand is sensible or not.

Platform Comparison:

Another thing they can do is check which platform is working better for them. They can compare easily between the platforms. And this strategy helps them boost their content or product.

How Does the CPM Calculator Work?

The front-end works if you put data in the 1st and 3rd box and hit the calculate button. But the back-end works with javascript. There is a CPM formula which is written in that javascript code. If users enter the numbers and click the button, then it uses that formula and calculates the given data. Then show the result in the below box.

How to Improve CPM?

To improve CPM, there are things like focusing on high quality targeted audience, optimising ad placements, using different types of ads to see which works. 

Targeting High Quality Audience:

To improve your CPM, one of the best things can be done is targeting a high quality audience. If you target them, there's a high chance of those leads getting converted and sometimes turn into repeat customers.

Changing Ad Placements:

If you want to increase CPM, there's another way to do that. If you are placing ads in one place, then you can try to place ads in different places and test the CTR.

Using Different Types of Ads:

Another great way to improve CPM is to use different types of ads and test which one works. Most of the companies test several types of ads and see which works. After finding a winning type, they use that type to create more ads and thus their CPM increases. 

 

However, there's another way to improve CPM, that is by changing the existing ad manager and hiring a new one.

What Are the Alternatives to CPM?

There are some alternatives to CPM. They are CPC, CPA, CPE. CPC means cost per click, CPA means cost per acquisition, and CPE means cost per engagement.

 

CPM is when you pay for every 1000 impressions of an ad, CPA is when you are paid for every successful lead, CPC means paid for each and every click, and CPE means when an ad engages with the viewers then it is paid. 

Limitations

If you look closely, you will see that the tool has 3 selection boxes and if you select the CPM box and enter a value, you will not get any result. Actually that box shouldn't have been there. So, wherever you want to calculate CPM, you may not enter data there.
 

FAQ

How to Calculate CTR?

CTR means click through rate. There is a simple formula to calculate CTR. The formula is (number of people clicked/number of 

) x 100. 

Should I Use CPM, CPA, or CPC?

Though it largely depends on you (as you need a good profit margin), you need to know which one to use for which platform and which one will be effective in achieving your goal. CPM is best for reaching your target audience, CPC is for driving traffic. CPA is best for lead generation.

When Should You Use CPC Instead of CPM?

CPC is used for driving traffic to your specific target. You have to pay only when someone clicks on your ad. On the other hand, CPM is you pay for every thousand impressions. So, CPC is best if you're looking for targeted persons like filling out a form because you don't want to show people who are not interested.

Why is My CPM Higher Than the Industry Average?

There can be several reasons for this. It may be because your targeted audience is highly valued, your niche is highly competitive or your targeted location has higher value.