CPM Calculator | How To Calculate CPM?

What is CPM? What is a CPM calculator? How to calculate CPM? What is the average CPM benchmark? What affects CPM data changes? This article summarizes all the information about CPM to help you better understand advertising.

CPM Formula – What is CPM?

CPM stands for Cost per Mille, which refers to the cost you need to pay for every 1,000 people in a PPC or pay-per-click campaign that sees your ad.

Mille means one thousand in Latin and French, so CPM is the cost per thousand impressions. One display of an advertisement usually means that an advertisement is viewed by a user. In the field of online advertising, the cost of one display is often small, and it is more convenient to directly view or compare the cost of one thousand impressions, so CPM is a more popular indicator. CPM is affected by the total cost and the number of impressions. Its calculation formula is as follows:

What is a CPM calculator?

The CPM calculator is an advertising tool that does not need to do math calculations on paper, and can directly provide you with the immediate results of the CPM.

CPM is affected by the total cost and the number of impressions, so the total cost and the number of impressions need to be obtained in the CPM calculation. In addition, the CPM calculator does not only calculate CPM. Knowing the number of impressions and CPM, can calculate the total cost. This is a reciprocal process.

How to use CPM calculator?

1. Go to the Google Extension Store to install CPC & CPM Calculator

2. Click on CPC & CPM Calculator which is installed

3. Enter any two of indicators: total cost/impressions/CPM

4. Click “calculate” to query the third indicator

5. Click the “Reset” button after the calculation is completed

Benefits of using a CPM calculator

1. There is no need to memorize the CPM formula, you can get the result with your finger

2. Using the CPM calculator, you can insert different numbers to view the fluctuations of advertising campaign costs under different circumstances.

3. Adjust advertising campaign costs based on calculation results

4. Calculator chrome extension can be opened at any time on any page

When should you use an online CPM calculator?

We recommend using it at the start of any PPC campaign. This will be very helpful for timely adjustment of the advertising budget. Of course, the following three situations can also bring surprises.

✔ Calculate marketing expenses before advertising, compare with the advertising cost benchmark to ensure the reasonableness of the advertising budget

✔ Adjust advertising budget during advertising. The actual advertising cost needs to be adjusted at any time whether it is high or low

✔ Use the CPM calculator before the holiday to promote your ROI

How to get CPM benchmarks?

The CPM benchmark represents the general standard of advertising costs and has a very large reference value for advertising.

ADCostly is a professional Facebook advertising cost benchmark tool. You can view detailed CPM costs through filters such as industry, channel, country, and date. For example, the average CPM of Facebook in 2020 is $3.37. This data has great reference value for advertising.

More changes in advertising costs can be viewed at ADCostly, the tool is free.

What affects your CPM?

The factors affecting CPM can be divided into two types:

  • The price advertisers are willing to pay
  • The number of advertisers willing to pay that price

These two factors can be expanded into 3 directions: Audience, Context and Environment.

Audience mainly includes the choice of advertising keywords. Different keywords contain different audiences, and keywords with a large audience can bring better conversions. You can refer to the Audience section of ADCostly for the audience number and price.

Context mainly includes topic/niche and visitor depth. If you want to retain users, the copywriting and content must be guaranteed to solve user pain points.

Environment includes seasonality, economic status, quarterly buying cycles, news and events. CPM will also change due to time changes and human factors. Pay attention to CPM benchmarks and make reasonable adjustments.

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